White House administrators are saying that the estimates for how many jobs the economic stimulus plan will create or save are right on target. Officials project the package will save about 3.5 million jobs.

Estimates when the package was announced said the $787 billion stimulus package would save or create between 3 million and 4 million jobs.

Yes, there’s a catch

While officials predict that 3.5 million jobs will be saved or created by the stimulus package, they agree that it’s possible the unemployment rate will still get higher at the same time.

Job loss may be so steep that the number of jobs lost will exceed the number of jobs created and saved. Thus, the unemployment rate will be lower than it would otherwise, but it could still climb higher than the current 8.9 percent national unemployment rate.

Time frame

The projection regarding number of jobs saved or created applies through the end of 2010. So don’t go out and get cash advance loans thinking you’ll get another job before it’s time to pay it back. This is going to take a while.

The report says that 1.5 million jobs will be created or saved by the end of this year.

Possible further action

According to a report by Reuters:

The official said the administration was monitoring closely the results of the $787 billion spending and tax-cut package to determine whether additional actions are needed as “mid-term” economic forecasts are prepared by the White House.

The official who spoke to Reuters, who was not authorized to speak publicly on the stimulus program, said further action likely won’t be needed, but it will be taken if necessary:

“At this point we think that we’ve taken the right steps and (the plan) is going to do what it needs to do for the American people, but the president always said we’ll do what it takes. So we will very much be watching,” said the official.

Current unemployment

According to Reuters:

On Friday, the Labor Department said U.S. employers shed 539,000 jobs in April, pushing up the unemployment rate to 8.9 percent, the highest since September 1983.

Currently, Michigan has the highest unemployment rate in the United States, followed by Oregon. Both states have unemployment rates higher than 12 percent.

As of March, the United States economy had already shed 4.4 million jobs. A Special Report from CNN Money reminds us that the unemployment rate only counts those who are filing for unemployment benefits.

Almost one out of six members of the labor force are either unemployed, working part-time when they would prefer to work full-time, or are out of work and have become so discouraged that they did not look for work and thus not counted in the unemployed total. That’s the highest reading in that measure that goes back to 1994, says CNN.

Jonathan Stein of Mother Jones reports that Sarah Palin may need to kiss the blarney stone to have any hope of challenging for the presidency in 2012. And it’s all thanks to earmarks.

Remember when Palin was the candidate opposed to wasteful government spending and earmarks? Apparently the upcoming economic stimulus pork bill will set aside $140 million in cash advance earmarks for Alaska, as requested by Governor Palin. For those of you doing the math at home, this will make Alaska number one in earmark spending per capita.

Oink goes the pig with luscious lips

According to Stein, just hours after they first published a story about Palin’s earmark Watusi, her office issued a press release headlined, “Governor Palin Continues Earmark Reform.” The main point, per Stein:

Since she took office in 2006, Palin has each year requested fewer earmarks and has recently only put in requests for a handful of projects. In other words, it’s okay to make some earmark requests, just not a lot.

Jake Tapper of ABC News noted during the presidential campaign that Palin went on with Charlie Gibson and said that “The abuse of earmarks (is) un-American, undemocratic, and (is) not going to be accepted in a McCain-Palin administration. Earmark abuse will stop.” Palin even added that John McCain was “a crusader against earmark abuse, and that’s what I joined him in fighting.” McCain, for the record, is supposedly anti-earmark.

Palin remains trapped between her campaign rhetoric and her governing reality. She denounced earmarks as a candidate; she continues to request and accept them as a governor.

I have to birdwalk a bit here. When I was a college student, I once took a creative writing class. One of my classmates, whom I’ll call Ron T., wrote a poem about the blarney stone. Ron always looked like he’d had a few. His poem was called “When You Wish Upon the Barley Stone.”

Bartender, pour me some of what Sarah and Ron are having…

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Barbara Hollingsworth of the D.C. Examiner recently offered inquiring minds a glimpse into how some of the economic stimulus dollars taxpayers are putting up will work. Specifically, for those of you who love pork and controversial special interests like the Association for Community Organization for Reform Now (ACORN), the National Education Association (NEA) and National Council of La Raza, bon appetit!

Hollingsworth suggests that one of the first things President Obama should do to cut the federal deficit in half by 2013 is to cut the congealed pork fat that’s slated to fall into the trough of those organizations and others like them. ACORN, the NEA and La Raza have “already received billions of tax dollars under Obama’s $787 billion stimulus plan,” she says, and they are expected to receive even more.

Suey! Suey!

Taxpayers for Common Sense found thousands of earmarks in the recent economic omnibus, which totaled $7.7 billion. President Obama has vowed to fight back against earmarks, so one wonders when he’s going to get on that…

The omnibus bill, according to Hollingsworth, contains a $473,000 earmark for La Raza, “which has called for Mexico to annex the southwestern states.” ACORN, an organization that has been implicated in voter fraud and is largely responsible for America’s subprime housing crisis, is slated for “more than $7 million in earmarks.”

Emergency projects funded on your dollar

For your enjoyment, here are a few other pet projects Hollingsworth brings to light. Keep in mind, America is in the middle of an economic crisis:

• A planetarium in Peoria
• Potato cloning in Maine
• A “World Trade Center” in Montana
• A $5.8 million “Ted Kennedy Institute for the Senate”

I have to laugh. Democratic Majority Leader Steny Hoyer tried to justify the pork (which 60 percent of Democrats supported) by saying that “You can’t spell ‘earmark’ without an R.”

Sen. John McCain wants President Obama to keep his promise about fighting earmarks. Taxpayers cannot afford the additional burden. The national debt is about to increase from $120,000 per household to $152,000, writes Hollingsworth.

Pen the pigs, or else

Not only are the earmarks out of control, but the bill contains “an eight percent increase over baseline spending at twice the rate of inflation.” This is a huge discretionary spending increase. Overall, I’d say America ought to use more discretion when they determine the amount of the easy loans they throw at known predators like ACORN.

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What does Obama's win mean to you (photo by flickr)?

People looking for help when their budgets are overstretched have options, thanks to cheap loans. But despite his pledge to heavily regulate useful products like these, President Obama still finds favor with Americans when it comes to his economic policies.

A Reuters UK report by JoAnne Allen shows that according to public opinion polls, “large majorities” of Americans remain on board with the president’s plans to revive a sagging economy. His bipartisan approach has also gained favor.

Americans are optimistic

A Washington Post-ABC News poll found that 68 percent of Americans approve of how Obama is doing, while 64 percent support the $787 billion economic stimulus package and the foreclosure support package. A New York Times/CBS News poll marks 63 percent as Obama’s current overall approval rating, with over 75 percent of Americans claiming they’re “optimistic” about the next four years

Among the things both polls had in common was that they found that Obama had widespread bipartisan support. On the flip side, those polled were quick to find fault with Republicans for their divisive stance. Sixty-three percent of them felt Republicans had “opposed the economic stimulus package for political reasons rather than policy concerns.” As anybody knows about politics, however, opinion loans itself cheap; it’s a matter of which way the wind is blowing.

Will the stimulus help?

Interestingly, while 62 percent think the stimulus will help local economies, only 46 percent think it will help them personally.

The ABC News/Washington Post national telephone poll consisted of a 1,001-adult sample taken over four days. The margin of error for that poll is three points. The four-day New York Times/CBS News poll included 1,112 adults, and the margin of error is also plus or minus three percentage points.

President Obama definitely has a long ways to go before proving to the American people that his policies will right the sinking ship of the economy. Time will tell, and even so, skeptics abound. Yet if he continues to focus on the big picture rather than cracking down on short-term consumer products like cheap loans, that will be some small consolation.

Related Articles

• How We Know Obama’s Doing Something Right (mydd.com)
• Obama’s First Health Care Reform Test: His Tax Increase Proposal (alankatz.wordpress.com)
• Obama Bans Budget Gimmicks (politicalwire.com)

When it comes to financial relief in America, Axel Merk sees no cheap loans on the way from the Federal Reserve.

Merk, the president and CIO of Merk Investments, recently contributed an editorial to the “Investors’ Soapbox AM” segment of Barron’s that criticizes Federal Reserve Chairman Ben Bernanke lack of engagement over some key economic issues. Merk wonders whether Bernanke’s exit strategy from the recession is an exit strategy at all.

As Merk sees it, the following are two major issues he feels that Bernanke and the Fed should address:

• Mortgage-backed securities (MBS) purchase programs can’t be phased out. The $500 billion the Fed plans to spend on these, according to Merk, can’t be offloaded to the market again. Thus, they’re permanent additions to America’s economic landscape – “almost a doubling from the base before the start of the credit crisis” – and inflationary “unless otherwise sterilized”
• At some point, Merk feels, President Obama’s stimulus plan will produce the desired effect. However, Merk feels it won’t be loans cheap; it will be “much later, be less efficient and thus more inflationary than many anticipate.” He predicts that in a “best case” scenario, the Fed policy will quickly follow up an initial tightening with dramatic easing. He has not seen indications of this from Bernanke.

Risk: not as small as you imagine

The Fed also claims that the credit risks they have assumed are “rather small” (Bernanke’s words). If this is true, why are they taking on new staff to weed through all of their acquired assets? Merk wonders whether the Fed has bitten off more than it can chew and does not understand the level of risk they have absorbed.  Bernanke, much like President Obama, said that not acting would have been disastrous. Acting is one thing; acting in the most appropriate fashion is another. The mere fact that the government and the Federal Reserve have acted is no assurance that things are going to be fine and the right actions are underway.

Traditionally, the Fed’s activities are “off-balance sheet” from Congress. Now they’re beginning to change tactics and take it upon themselves to allocate credit to industries and sectors. Merk fears that the transition from monetary to fiscal policy will expose the Fed to Congressional and public criticism that can damage the Fed’s credibility and effectiveness in ways it has never faced before. That would hurt the Fed’s ability to float ideas on monetary policy.

Ride this out

Cheap loans will remain in circulation for consumers who need emergency cash, but the Federal Reserve may have no such quick fix for what ails the nation. Time will tell. Strap yourself down and hold on.

Related articles

• Lands of the lost (economist.com)
• Read the Fed’s statement (money.cnn.com)
• Fed Slashes Rates! (usnews.com)

America’s ailing economy is in need of quick aid, a true payday loan that will help bridge the way. Unfortunately, for as much as President Obama has been encouraging quick action to get a stimulus package passed, we may not see real change for some time. Many even argue that the stimulus package does not take the optimal path toward healing and reform.

However, the package moves forward. According to a breaking BBC News report, “the Democratic-controlled Senate voted 61-37 to approve the measure, with few Republicans opting to back it.” According to reports, the economic stimulus plan that the U.S. Senate has passed will cost somewhere in the neighborhood of $838 billion.

Interestingly, Vice President Biden has been widely quoted as saying that there is a “30 percent chance” that this stimulus package will not work. Many pundits consider that estimate to be conservative.

What’s next?

Next, a number of things must happen. First of all, it is expected that the Senate-passed version will enter into negotiations so that it can be “reconciled” with the legislation that has already passed the House of Representatives two weeks ago. After that, it will cross President Obama’s desk for the final sign-off. His signature could mean the cash advance that the Dow Jones has been waiting for. Watch those indexes…

President Obama has said the package will “create up to four million jobs and help lift the economy.” He expects the final House/Senate package to reach his desk by February 16.

Moving forward

The House and Senate measures are reported to be “largely similar.” Differences that will go up for debate include how lawmakers are going to expand the Medicaid and other various spending priorities. In the House version of the bill, greater resources are allocated to schools, local governments and individual states. On the other side of the coin, the Senate bill focuses more on tax cuts.

Whatever happens, this stimulus package will at the very least bring hope to many. It is the hope of Cash Advance Mojo and everyone at your payday loan source, that the stimulus package and other bailout money is used to fix the broken economic system, rather than trying to merely plug a hole with money.

Related articles

• Congress Talks Stimulus Amid Obama Push (abcnews.go.com)
• Obama aide urges stimulus haste (news.bbc.co.uk)
• Stimulus Compromise Reached in Senate (takepart.com)

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Many organizations and causes expecting cash advances through the government’s massive economic stimulus package will have to wait for other bills to come along. During the course of the debate so far regarding the stimulus package, a total of 41 items have been cut from the bill completely. Others have had the amount they will get reduced

To view the full list of items cut, visit CNN Money. I will detail some of the bigger cuts here.

State fiscal stabilization

One of the biggest items in the bill was infusing state budgets with cash. Surprisingly, the entire $40 billion that was dedicated to helping states balance their budgets has been cut from the bill completely.

I am sure that other items in the bill will help state budgets, and as long as the country’s economy is stimulated as a whole, the state economies will benefit, too. I have to say, though, with all of the other items that are in the bill, it surprises me that funding specifically dedicated to no other purpose besides financial stabilization was cut.

School construction

The biggest cut made to the stimulus package so far was the money slated for constructing schools. The cause was going to get $16 billion under a previous version of the plan. Now that funding has been completely eliminated.

I can argue for both sides of this decision. Constructing schools would accomplish a key goal of the stimulus package: to create jobs. More and better education will also be good for the economy in the long run. However, because of the time it takes to build schools, it would be a while before actual job creation began, and Congress has been stressing that the stimulus needs to work quickly. Also, more teacher jobs would ultimately cost the government more money.

An additional $3.5 billion was slated for higher education construction, and that funding was also cut.

Health prevention activity

An early version of the bill pledged major cash advances to people’s health. But now the $5.8 billion dedication to preventative health services has been cut. I think it’s unfortunate because this item could have helped many people who don’t have health insurance. However, I don’t see a clear way in which it would have stimulated the economy.

Broadband

From the beginning of his campaign, President Barack Obama has had a goal of making broadband service available for everyone. He wanted $2 billion in stimulus money dedicated to this cause, but it looks like he will have to wait for a later opportunity to achieve this goal. Funding for broadband has been cut from the bill. So if you live in an area where broadband isn’t available, you will have to wait for a later time to have access to the service.

Retrofitting Project 8 Housing

Project 8 Housing is government-owned or supplemented rental properties that are only available to low-income families. Congress tried to include funding to retrofit these rental properties to better weather earthquakes and other natural disasters. Originally $1.2 billion was slated for this cause, but now it has been eliminated.

This is another case, I think, in which the item was cut because it wouldn’t do enough to actually stimulate the economy. The project would have created jobs by putting people to work on doing the retrofitting, but perhaps it just wasn’t enough to justify the expense.

I guess those causes will just have to wait for another bill to get their cash advances.

President Obama

The stimulus bill fails bring in a payday for those who need to be bailed out. The bill failed to pull the two halves of the senate together in a shocking defeat of President Barack Obama’s promise of bipartisan cooperation.

The Senate is debating the stimulus bill in a heated fashion that has forced parties to vote down party lines. The Senate’s failure to come together in an unprecedented manner is not shocking for those who have participated in politics for any number of years.

US Senators fight over tax cuts

Republican Senators argue that more tax cuts need to be added to the bill and big business does not need a unwarranted payday at tax payers expense. Republicans claim that cutting payroll taxes is the fastest way to stimulate the economy and not giving billions to failing financial institutions. Republican Senators are trying to convince Democrats that making the task of hiring employees cheaper for businesses will save jobs and create new jobs.

Congress likely to bail out worthless debts

Billions of dollars are going to practically disappear when they go to pay debt holdings that do not directly connect with the American economy. Many debts are owed to people, businesses, and countries that are not located in the United States. Once the money is given to the elusive financial institutions likely non-US debt holders will cash in their financial instruments and use the money for alternate interests. This will be the biggest payday ever at the expense of taxpayers.

78 Billion dollars have been lost

The US Government has allegedly lost 78 billion dollars by over paying for financial instruments and bad debt. On average the US Treasury received only $0.66 cents on the dollar for these bad debts without ever informing the US public. This is the biggest payday ever for the financial institutions who knowingly risked the stability of the economy for personal financial gain.

Stimulus deal not likely going to make a difference

Many economists debate whether the stimulus bill will make a significant difference in the US economy. Many think that the problem is a global issue and that the stimulus bill borders on the line of US protectionism. When other countries follow the US example and appear to be subsidizing their own businesses, they may take similar actions whether warranted or not.

Proposed 42 percent tax cut

Unemployment is at 7.6%  and in the last 3 month 1.8 million jobs lost. These are shocking statistics. Many are hoping for a 42-50% tax cut as a way to stimulate the economy. The average job search takes 19.6 weeks. That is a long time to wait for you next payday. It is not surprising that many are turning to payday loans and short term installment loans to make ends meat between paydays.

Payday loans and installment loans are getting people through hard times

Although there are huge misconceptions when it comes to the payday loan and installment loan industries, many Americans are thankful that they have access to instant cash when they can’t easily pay the bills. Many spouses are now having to cover the bills with payday loans and cash advances while their significant other looks for work or waits for their unemployment income.

The banks that are failing paid for payday loan smear campaigns

Big banks and financial institutions that are at the source of the US economic problems have tough competitors in the short term loan industry. Some financial institutions depend on hidden fees for their existence to the tune of 60% of their revenues being derived from these types of fees.

Financial institutions rip off Americans who are now turning to payday loans

Have you ever calculated the interest rates for financial institution fees like: overdraft fees, mortgage late fees, utility bill late fees, etc. and shockingly increased credit card rates? You would be surprised. Here is our loan calculator that you can use to compare the APR on these common types of fees and the fees of the payday loan industry.

The Senate debate fails to reign in out of control financial institutions. The stimulus income will mainly go to bail out those who are lying to the public about the payday loan industry. It will be known in the next week, possibly by Sunday whether the stimulus bill will pass in its current form.

NOTE: Influential participants in the debate over the Senate bailout deal to stimulate the US economy.

Steve Chu
Panetta
Daschle
Voinovich
Senator Collins
Senator Kennedy
Senator Thad Cochran
Senator Kent Conrad
Senator Dick Durbin
Senator Ted Kennedy
Senator Jon Kyl
Senator Carl Levin
Senator Richard Lugar
Senator John McCain
Senator Olympia J. Snowe
Senator Arlen Specter

Your online payday loan store brings you updates on the economic stimulus package.

After every Republican senator in the House voted “no” on Barack Obama’s economic stimulus package, the president is calling in reinforcements. Although the House passed the bill thanks to the Democratic majority, Obama is nervous about whether the Senate’s version of the bill will pass. Read this article by your online payday loan source to see how the plan fared in the House of Representatives.

The House version of the bill came to a total of $819 billion, which Republicans agreed was too expensive. The Senate’s version costs even more. With so many states facing budget deficits, Obama is trying to rally support from governors in effort to help the stimulus package pass.

Governors take initiative

Some Republican governors seemed to need little or no encouragement to ask their state senators to vote “yes.” Alaska Governor Sarah Palin is planning to push for her state’s share of the package. Governor Charlie Crist, of Florida, was already on the phones last week asking his state’s congressional delegation to support the bill.

For those who need just a little more convincing, Obama is willing to make the time. Governor Jim Douglas’ state, Vermont, is facing a $200 million budget shortfall. Obama is meeting with him today, and Douglas  has already said that after his meeting with the president he will urge senators to approve the package. Douglas is also vice chairman of the National Governors Association, so it is expected that he will influence other governors to do the same.

No party favors

While Obama is out rallying support from the opposition, some of his own party members are working against him. Senators Kent Conrad and Ben Nelson, both Democrats, are raising concerns about the plan.  It’s not surprising, considering that Conrad’s state, North Dakota, is projected to have up to $800 million in reserves by 2011. Last year Nebraska, Nelson’s state, projected it would have a $400 million surplus.

Still, Republicans are doing the majority of the trash talking. Senate Minority Leader Mitch McConnell said Obama should be “embarrassed” about the package. Former presidential contender Senator John McCain, Arizona, had his opinions, too.

The bill contains “too much unnecessary spending, not the right kind of tax cuts and no endgame,” McCain said.

Check back with your online payday loan source for more updates on the economic stimulus package.

Government workers in California might find themselves needing payday loans if Governor Arnold Schwarzenegger is allowed to force them to take off two unpaid days per month. However, if the governor does not get his way, he warns, the results will be far worse.

Schwarzenegger says that without the furloughs, he will be forced to lay off government employees instead. State employee unions are saying Schwarzenegger doesn’t have the authority to mandate the unpaid leave. Some union. I’m sure, given the choice, that most state workers would chose having a slightly lower salary above having no job at all. As long as you’re still getting a paycheck, payday loans can help if funding gets tight.

Banking on a bailout

Earlier this month Schwarzenegger said that California was in a “state of emergency” because of its $42 billion budget deficit. Fortunately for Schwarzenegger, and Californians in general, help might just be on the way. About two-thirds of the $819 billion economic stimulus package will go to aiding states.

That means if the current plan passes California could get $63.4 billion. The American Recovery and Reinvestment Plan has already been approved by House. It now faces a vote by the Senate.

Facing the consequences

Schwarzenegger says the mandated unpaid vacation will save the state $1.4 billion. The governor has told the unions that if they don’t back him on the furloughs or find another way to save $1.4 billion he will be forced to cut jobs. He may not have the authority to force people to take unpaid days off, but he can fire people.

“The fact of the matter is, in the end I have the authority as the governor to, if they don’t go along with the furlough, lay off the amount of people necessary so that we have a savings of $1.4 billion, so that’s what I will do,” Schwarzenegger said.

My advice to the government workers of California is to take the two days off and grab payday loans if they run into financial problems; that would sure beat unemployment.

The U.S. Capitol Building will be busy as Congress rushes to finish the economic stimulus package.

Your online payday loan source keeps you updated on the economy.

Progress is going forward on the president’s economic stimulus package. Barack Obama’s American Recovery and Reinvestment Plan will be reviewed by the House of Representatives on Wednesday.

Senate Finance and Appropriations committees, also on Wednesday, will review the portions of the stimulus that concern them. Consensus among leaders is that the bill is on schedule to meet the mid-February goal for completion.

No time to argue

Many Republicans still oppose the overall size and expense of the $825 billion package. Congress members such as House Minority Leader Boehner have proposed a number of changes that lean toward heavier tax cuts. Advocates argue that the tax cuts will have a more immediate effect on the economy.

Nevertheless, both sides of the aisle agree that the legislation will be ready for the president’s approval before the President’s Day recess. House Speaker Nancy Pelosi  has said the package must be on the president’s desk by Feb. 16 or else Congress will have to work through the recess to finish it.

“We’ve been asking for this economic recovery package for one year … We’ve been working on this for a long time,” Pelosi said.

Luckily, it only takes a couple of hours to get an online payday loan, not a couple of years.

Maybe a little time to argue

The White House disagrees with the assertion that the stimulus won’t stimulate quickly enough. At least 75 percent of the total $825 billion will be spent within 18 months after the bill is passed.

Senator Chuck Grassley of Iowa has said he will fight for amendments to the bill, including adding an alternative minimum tax patch.

“Without (an AMT patch), at least 24 million middle-income families will face a tax increase, and that’s the last thing anyone needs right now,” Grassley said.

Check back with your online payday loan source for more updates on the progress of the economic stimulus package.

Experts are suggesting financial education as a means of long-term national economic stability.

With options like payday loans, credit cards and all kinds of lending sources out there, some analysts are wondering whether financial advice should be part of the effort to repair the economy.

An economist and columnist for the New York Times, Robert Shiller,  points out that Americans making bad financial decisions was a big contributor to the economic crisis. The blame game has shifted responsibility between so-called “predatory lenders” and people who took out mortgages and other loans they couldn’t afford.

He suggests that a good step toward preventing another economic crisis is to fund more government programs that help people become financially literate.

Existing programs and efforts

There already are a few government-funded efforts in place geared toward financial education. These include the Office of Financial Education and the Advisory Council on Financial Literacy. Both programs mainly distribute financial education through outreach to schools.

Some states have taken it upon themselves to require financial literacy as a high school graduation requirement. So it appears that efforts are being made to ensure that the next generation will be more financially literate in the future. But what about the current generation? They aren’t going anywhere any time soon. And many of them don’t even understand how payday loans work.

Help for everyone

Shiller suggests that the government should subsidize financial advise because most people get their advise at the same time they are getting a sales pitch. People who took out subprime mortgages relied on the advise of the people who were profiting from those mortgages, and catastrophe ensued.

This is why Shiller suggests that there should be financial advise available from parties that are not involved in financial transactions. With con artists, defrauders and financial predators out there, the government could help keep individuals’ finances stable. This, in turn, would help keep the nation’s finances stable.

More reasons to educate the  masses

The Federal Housing  Administration is in charge of making sure that mortgage lenders are legit and ethical. However, the FHA admits that it is understaffed and unequipped to screen the high number of lenders who are applying for government approval.

Furthermore, if the government employes financial advisers, that will create jobs and help stimulate the economy. So, in regard to addressing the withering economy, it’s a win-win.

Obama’s economic plan

Barack Obama has said many times that his economic stimulus package is designed to stimulate the economy in the short term as well as build financial stability in the long term. If funding is included to employ public financial advisers, the initiative will achieve both long-term and short-term affects. it will immediately create jobs for those financial advisers, and it will give individuals the tools to ensure their own long-term financial stability.

Educating people about their options, such as teaching them the benefits of using payday loans instead of credit cards, would certainly make for a more financially healthy nation as a whole.

Franklin D. Roosevelt was the last person to take over presidential office in the midst of a major recession.

Long before there were payday loans, the United States suffered the Great Depression. In the midst of the intense recession, a new president was elected, and his focus right from the beginning was straightening out the economy. The nation faces a similar situation today. Just as Americans looked to Franklin D. Roosevelt to turn the Great Depression around, the U.S. now looks to Barack Obama, who will be inaugurated today.

The modern economic downturn hasn’t reached the catastrophic levels that  the Depression hit. We haven’t experienced deflation, which in the 1930s pushed the dollar’s value to practically nothing. However, the economy is the worst it has been since then. It’s the worst financial situation most Americans have seen in their lifetimes, and they are depending on Obama to fix it.

From day one

Roosevelt’s project was called The New Deal. In his first 100 days as president he pushed through 15 pieces of legislation. Obama won’t pass that many bills, but he will be making decisions and implementing policy changes that will likely affect the country for years to come, just as The New Deal did. Affects of The New Deal still affect our society today. Unions, farming regulations and minimum wage are just a few of the policies that Roosevelt started.

Obama has his own plan, the American Recovery and Reinvestment Plan. Getting that plan passed and implemented is item number one on Obama’s list. This plan addresses unemployment by creating and saving jobs. It also contains tax cuts, which are meant to increase consumer spending. But this plan is not all the economy needs, because these issues are only the beginning.

Mortgage crisis not over

Another item on Obama’s list will be helping Americans keep their homes. The Bush administration’s efforts were not successful enough to end the mortgage crisis. Many people are still facing foreclosure. Obama has been given access to $350 billion in TARP funds, which are slated to be used to end the housing crisis.

Obama has said up to $100 billion will go toward preventing foreclosures. I’m sure all the Americans who needed payday loans just to pay their mortgages will appreciate any relief they can get.

Bigger, better, bailout

The remainder of the TARP money will go toward stabilizing the financial system. The credit crisis has caused the country to carry an unmanageable amount of debt. Previous efforts to aid this situation have been largely ineffective, and Obama has promised to do something different, and quickly.

One creative idea he’s proposed is to create a “bad bank.” This bank will belong to the government and will basically be a storage space for bad assets that the feds buy up to balance banks’ budget sheets.

More loose ends

Besides the investment industry, the auto industry is also in dire straights. It has requested a bailout as well. At the same time Obama is dealing with all of these other financial issues, he must pass a budget for 2010.

And he can’t just think about the United States, he must meet with world leaders to discuss global regulations to help with the worldwide economy.

Something to believe in

A contributor to the economic downturn is consumer confidence. In order to truly turn the crisis around, Americans must be optimistic about the future of the economy and believe in Obama’s plan. Just as Roosevelt had to gain public confidence in The New Deal, Obama will need to sell his ideas to the American public.

Your payday loans source keeps you up to date on the nation’s financial news.

Showing the money

On the same day House Democrats unveiled their version of the economic recovery plan, Congress agreed to release the remaining $350 billion slated for bailout money to ease the mortgage crisis.

Barack Obama secured his first legislative victory before he even took office when Congress agreed to allow access to the remaining $350 billion in TARP funds.

Thought Barack Obama is not officially president yet — he will be inaugurated Jan. 20 — congress released the money to him. The money is part of the Troubled Asset Relief Fund.

Narrow victory

The vote in the Senate on whether to release the bailout money was close. But in the end, the movement to release the funds passed 52-42. Many Senators on both sides of the asile sought to block the funding because they were angry with the way the first half of the TARP funds hand been handled.

The Treasury did not carefully track where all of the funds went. Also, the majority of the home loans that were modified after the bailout ended up in default anyway.

Avoiding crisis

Passage of the measure to give Obama the bailout money mean an awkward situation has been avoided. Obama requested the funds last week. After many Democratic leaders in Congress expressed the desire to vote down the motion, Obama threatened that he would veto the vote to block access to the funds the day he became president.

In other financial news, obama has said that when he takes over office he is considering placing federal restrictions on the payday loan industry. A few states have already put interest rate caps on payday lenders, and Obama wil consider whether to make those caps nationwide.

Bringing change

Obama has promised that the remainder of the TARP funds will be handled differently than the first half. He will require more stringent monitoring of where the money goes. He has also said that a large portion of the money will go toward preventing foreclosures.

he also assures the public that the process will be transparent, and that American citizens will know  what is being done with the bailout money. Democratic leaders are also calling for regulation to limit the amount of money tha tgoes to salaries and compensation for financial institution executives.

Senators chime in

Democratic Senator Claire McCaskill supported handing the money over to Obama, saying she is giving the incoming administration the benefit of the doubt. But Republican SenatorJim Inhofe was vehemently against it, calling the vote “egregious.”

Casting their last votes of their Senate careers, Vice President-Elect Joe Biden and Secretary of State-Designate Hillary Clinton supported giving Obama access to the funds.

Obama’s two cents

Obama said he was “gratified” that the vote went in his favor> he renewed his promise to handle this half of the TARP funds more responsibly than the Bush administration had handled the first half. He said he will proceed with the plan in a “new and responsible way.”

This article was provided by your payday loan source.

$825 billion economic stimulus package

House Democrats today summarized the much-awaited economic recovery plan, and the total bill now is set at $825 billion. The plan includes $550 billion for spending and state aid. The other $275 billion will come from tax cuts.

House Speaker Nancy Pelosi says the bill will  be complete by mid-February. House committees will now review the bill and then it will go to the Senate.

Energy and infrastructure

The package, called the American Recovery and Reinvestment Plan, says $54 billion will be spent on producing alternative energy. Obama wants production of alternative energy in the U.S. to double. Tomorrow Obama will talk about the details at a wind turbine factory in Ohio.

As promised, the bill includes provisions for infrastructure and education. In this plan, $90 billion would go to repairing, modernizing and building roads, bridges, mass transit and waterways. More than $140 billion is allocated for state aid, and most of it would go to education.

Getting the job done

The plan also calls for saving or creating 3 to 4 million jobs. Some estimates say this will be done by 2010, but economists and other members of Obama’s team say it will take two years.

The recovery package also gives aid to those without jobs. $9 billion will go to increasing the amount of unemployment checks. $27 billion would go to extending unemployment benefits. $30.3 billion would subsidize health care for a year for workers who had health coverage through their employers and lost their jobs.

Tax time

Obama’s original plan called for a $3,000-per-hire tax credit for businesses, but the summary released today does not include that provision. It does, however, include what Obama calls the “Make Work Pay” credit, which will provide Americans an extra $500 through decreased paycheck withholding.

Businesses are still up for a tax cut, called the “net operating loss carryback,” but that might not make it onto the final bill. The amount dedicated to this tax cut is unclear. The bill also expands the earned income tax credit.

Republicans respond

The Republican Study committee put forth an alternative bill. Their bill allocates more for business tax cuts. House Minority Leader John Boehner has said that the Democrats’ bill contains questionable spending and doesn’t contain enough tax cuts.

Obama has said that he will look at any and all ideas for stimulus from both parties. With the small amount that would make its way back into individuals’ paychecks, though, many Americans will still be left needing a payday loan in the case of unexpected expenses.

The great debate

There is much talk in Congress as well as households across America as to whether tax cuts or government spending is the best way to stimulate the economy. Economists and politicians agree that there is an urgent need for government intervention to ease the economic  crisis, but Democrats and Republicans are sticking to their respective ideals when in comes to what form that intervention should take.

Democrats are pushing to fund government programs that will create jobs. Republicans believe that the money should go to individuals through decreased taxes.

My two cents

There are problems with both theories. Even if the full amount proposed goes to job creation, it will not bring unemployment back down to normal levels, it will simply decrease it. And tax cuts are a risky bet because after all of the financial hardship American families have been through they are saving more, and will likely continue to do so with any extra money they have.

Share your thoughts on which approach you think will get America’s economy back on track.

This article was provided by your payday loan source.

Obama faces opposition from Senate Democrats

President-elect Barack Obama unveiled his massive economic stimulus plan yesterday, and most of the resistance to the package seems to be coming from inside the Democratic party. In a closed-door meeting with Obama aides David Axelrod and Lawrence Summers, democratic leaders expressed reservations about proposed tax cuts for businesses and individuals.

Quite frankly, because of the economy, if someone gives you a tax break you’re probably saving that money. You are going to salt that away, you are not going to spend it,” said Senate Agriculture Chairman Tom Harkin.

Iowa Senator Tom Harkin

Harkin spoke to reporters after the meeting, and he said he thought the plan relied too much on the “trickle down” theory, reports the National Journal.

Party priorities

Democratic leaders are saying more emphasis needs to be placed on other parts of the plans, specifically investing in energy and infrastructure. Obama’s proposal includes plans to create jobs in developing alternative energy and repairing the nation’s roads and bridges.

Harkin said many people at the meeting expressed the sentiment that the most important step toward fixing the economy is creating jobs. Budget Chairman Kent Conrad said energy is “way underrepresented” in the plan.

Stimulus check vs. tax break

The plan would give individual Americans $500 over a period of months through decreased tax withholding. For some, this could make the difference in whether they need a payday loan. Tax cuts would also be given to businesses who hire new workers. After the Bush administration sent out stimulus checks last year, it had no noticeable effect on the economy. So many Democrats believe a tax break would be ineffective as well.

However, Majority Whip Richard Durbin disagreed. He believes that Americans save the  money from their stimulus checks “because it’s the only thing coming.” He argues that if a small but steady stream of extra cash were predictable, people would consider making purchases they otherwise would not.

More voices chime in

Economists are calling on Congress to act quickly to pass the American Recovery and Reinvestment Plan, but they are split on support for the tax cuts. Some support the breaks and believe they will stimulate the economy, but others are skeptical that it will encourage more spending.

The U.S. Chamber of Commerce responded positively to the plan. Chamber President and CEO Tom Donohue expressed a rare sentiment when he called the package a relatively “cheap investment.” The price tag for the plan is estimated at $800 billion.

Editing process

Summers, Obama’s economic council director, was noncommittal about what changes would be made to the plan. Leaders involved in passing the huge initiative expect to see a lot of back-and-forth before an agreement is reached.

Republicans yesterday expressed general agreement with the plan. Some are encouraging that the proposed grant to supplement state revenue should instead be loans.

Check back with your payday loan source for more updates on the progress of Obama’s proposed stimulus plan.

But they’ll cry if they want to

After his economic address this morning, Barack Obama’s fellow Democrats made it clear that they don’t agree with all of the President-elect’s ideas. Obama ran into opposition within his own party regarding the proposed tax cuts included in the American Recovery and Reinvestment Plan.

Senator Kent Conrad from North Dakota said he thinks giving businesses tax breaks for hiring workers won’t be effective.

“If I’m a business person, it’s unlikely if you give me a several-thousand-dollar credit that I’m going to hire people if I can’t sell the products they’re producing,” Conrad said.

While Republicans touted their total agreement with the tax cuts Obama is proposing, more Democrats had arguments against those cuts.

Voice of elections past

John Kerry expressed his sentiment that tax cuts are an indirect way of creating jobs and that the money should be spent on “infrastructure, on direct investment, on energy conversion.”

About $300 billion of the ARRP would go toward tax cuts for individuals and businesses. The plan now is rumored to carry a price tag of about $800 billion. That is 5.3 million times the amount you can get for a payday loan from Personal Money Store, in case you were wondering.

Too little too late?

Democratic Senator Ron Wyden, from Oregon, believes the tax cuts for middle class individuals will be too small to make a difference. The cuts reportedly add up to about $500 per worker, or $1,000 for couples.

“In tough times people don’t respond all that well to marginal changes, such as a small amount of money added per paycheck,” Wyden said.

Or too much too early?

Senator Max Baucus of Montana contends that it is too early to judge Obama’s plan. However, while most politicians are pushing for an agreement by mid-February, Baucus wants the plan to be put to a vote during the week of Obama’s inauguration, which is Jan. 20.

Sideshow

Obama appears to be having quite the red-letter day. On the same day he gave a major economic speech, Congress officially declared Obama the winner of the Nov. 4 election. Well, at least there is one thing we can count on.

Also today, Obama’s transition team petitioned Congress to delay the digital television switch, scheduled for Feb. 17. That is the day all television is supposed to be broadcasting digitally instead of using an analog signal. Obama says there simply isn’t enough funding to achieve the switch by the target date.

It’s not all fun and games, but some of it is!

Obama may be facing some tough times ahead, even when it comes to dealing with his own party, but at least he knows he has one fan: Marvel Comics (see http://www.foxnews.com/politics/2009/01/08/obama-stars-spider-man-comic-based-inauguration-day/). When the company found out that Obama collected “Spider-Man” comics as a kid, it decided to honor him by featuring him in an upcoming issue.

My favorite part: Spidey uses a basketball game to determine who is the real Obama and who is an impostor.

Back to the subject

Democrats are criticizing Obama’s tax cut proposals, and Republicans are unhappy about the overall cost of the economic stimulus plan. But there is one thing all parties agree on: action must be taken, and fast.

Obama believes that the stimulus package must be put into action before the nation’s financial situation gets any worse. He is concerned that unemployment will continue to skyrocket unless the government steps in.

This article was provided by your payday loan source.

Today was a big day for Americans waiting to hear more about what President-elect Barack Obama plans to do about the recession. A blogger at “The Oval” kept up-to-the-minute notes on his speech this morning.

He spoke for about 15 minutes, and he explained the reason for his push for quick action is to prevent unemployment from hitting double digits and prevent the recession from continuing for several years. At this point experts generally agree we are in for at least 18 more months of economic shrinkage.

Global waning

In his speech, Obama talked about the causes of the financial crisis.

“Banks made loans without concern for whether borrowers could repay them, and some borrowers took advantage of cheap credit to take on debt they couldn’t afford.”  Barack Obama

Most Americans are aware of this by now. But BBC.com reports an interesting twist that I hadn’t realized before. American and British banks had so much extra money because they borrowed from China, Japan and Russia. And we’re not talking about a $1,000 payday loan here; the U.S. borrowed billions. Now all the countries involved are experiencing economic downturn.

In fact, the United Kingdom cut its “Bank rate” (which is the same as our Federal interest rate) to historic lows today.

Gotta get a job

The media’s attention for the past few days has been focused on the rising unemployment rate. Joblessness is one of Obama’s main concerns as well. He has said before that he plans to create jobs in the the alternative energy industry. He reiterated this pledge today saying, “We will put Americans to work in new jobs that pay well and can’t be outsourced.”

He also plans to create jobs repairing the United States’ infrastructure.

“To build an economy that can lead this future, we will begin to rebuild America. Yes, we’ll put people to work repairing crumbling roads, bridges, and schools.”

Bloomberg.com reports today that the number of people collecting unemployment benefits is at a 26-year high. In fact, 4.6 million Americans are now collecting unemployment. The situation is even more dire in the UK. The UK’s population is about a fifth of the US population, and nearly 2 million people in the UK are unemployed.

Gotta spend money to make money

Obama spoke pretty broadly about the overall goals of his economic stimulus package. Along with alternative energy and infrastructure, he plans to invest in education and health care. Specifically, he wants to update classrooms nationwide and make sure all Americans’ health care records are computerized.

Roll that all together with the tax cuts he is planning, and you’ve got yourself a big chunk of change. Obama didn’t share an exact cost for the “American Recovery and Reinvestment Plan.” He did say the cost would be “considerable.” Various news sources are reporting a price tag between $675 billion and $1 trillion.

But Obama warns that not acting quickly will come with a bigger cost: “an even greater deficit of jobs, incomes, and confidence in our economy.”

Ending with optimism

Obama ended his speech by calling on all Americans “to look out for one another, and listen to one another, and do our part for our nation.” He believes that this year will be a hopeful beginning for the United States.

This article was brought to you by your payday loan source.

Obama’s plan targets low and middle-income taxpayers. Details haven’t been ironed out yet, but he is proposing a tax cut.

How much extra cash will I get?

The structure of the tax cut has not been decided yet. But this article from CNN suggests that affected Americans could see $83 to $166 more on payday. That could be the difference for some Americans who currently need payday loans to make ends meet.

Obama is hoping that the extra cash will boost consumer spending and stimulate the economy. Many analysts are saying that in order to turn the economy around, the first thing that needs to change is people’s perception. Some of the decisions aimed at trying to correct the current recession have caused Americans to have overly negative views about the country’s financial state.

A new strategy

Whatever the new president does, at the very least he needs to avoid making the mistakes that the current administration made. This article from Time Magazine says that the Fed’s policy decisions actually contributed to the current economic crisis when they were trying to alleviate it.

Among other missteps, analysts say that the government is treating the current recession the same way it treated The Great Depression, and that is unnecessary and detrimental.

Time suggests that the current financial crisis is really a crisis of confidence. Lenders don’t believe that loans will be paid by, either by consumers or by other banks. Consumers don’t have confidence in banks, the economy or even confidence enough to spend the cash they do have.

Restoring confidence

Come January Obama will have to face this crisis of confidence. The Washington Post reports that consumer confidence is currently at an all-time low.

The Conference Board Consumer Confidence Index conducted a survey this month. Among the results, the Board found that 42 percent of consumers view jobs as “hard to get.” It also found that compared to last month, a higher percentage of Americans expect business conditions to continue to get worse.

The Post also reported that the housing slump is continuing to grow worse in many parts of the country. Time reports that as the government continues to throw money at banks to help the credit crisis, these actions send a negative message to consumers. This worsens people’s perception of the economy, and the cycle of low consumer confidence perpetuating a shrinking economy continues.

The payday plan

Well, Obama certainly has his work cut out for him. Perhaps his plan to boost your payday will help turn things around. He has an additional plan, besides the tax cut, to help get extra cash into the hands of working Americans. He calls it the Make Work Pay Credit, and it would require employers to cut down the amount withheld from payckecks for taxes.

This plan might only amount to about $20 extra per paycheck. However, if both Obama’s plans are enacted, workers will end up with enough extra money to boost the economy. That’s the theory at least. Now that the recession is being viewed as a crisis of confidence, Obama hopes that if payday gets bigger confidence will be restored and spending will increase.

This financial education article was provided by your payday loans source.

China is in need of a credit repair

Some Good News for China

China’s government has revealed that it is going to deliver a credit repair, instant payday loans economic stimulus package that is larger than any such program in the country’s history.

According to a report in The Economist, the plan aims at the following areas:

The two-year spending initiative will inject funds into 10 sectors, including health care, education, low-income housing, environmental protection, schemes to promote technological innovation, and transport and other infrastructure projects.

For those of you scoring at home, it’s $586 billion U.S.

For the United States, the Chinese stimulus package means that the value of the dollar falls in relation to the euro worldwide. Traders were more willing to invest in Chinese stocks in light the stimulus package news. However, there is concern that it may not be enough for China.

You see, China isn’t eager to spill too much info

The true size of the stimulus package may be significantly smaller than reports, or it may have been partially distributed already, depending upon the source you believe. But as China the superpower goes, so goes the world. According to Samarjit Shankar, Director for Global Strategy at The Bank of New York Mellon in Boston:

There has been some renewed hope that since China is a key driver of global growth, that might lead to some recovery in market sentiment

China’s government is very interested in encouraging its consumers to spend and obtain forms of instant payday loans, because it is in the best interests of the nation’s bad credit. Apparently this has been difficult over the years. But it’s key to economic growth. As superpowers go, so goes the world.

Referring again to The Consumerist’s November 10 article “China seeks stimulation,” I found one reader’s comment to be insightful: