The national debt soars. This clock is a little slow. Image: Raphiq Phillips/Flickr/CC BY-SA

The U.S. will soon hit the $14.294 trillion debt ceiling, prompting Congress to vote on again raising the limit. But Congressional Republicans have threatened opposition if the vote does not include budget cuts and long-term debt reduction. If an agreement is not reached by August, it will be an unprecedented situation that will be felt by all consumers.

The limit the U.S. can borrow

The debt ceiling is the maximum limit the government is allowed to borrow to pay its current debts. In the past, Congress has always voted to raise the limit.

If the issue is not settled by August, military employees and dependents may see severe income losses. Those dependent on Social Security may be left out in the cold. The loss of Medicare could drive healthcare expenses to levels beyond the reach of most people. Interest and credit rates could drastically increase, as well as taxes.

Taxes pay only 60 percent

“Given that the government currently only raises taxes to cover 60 percent of what it spends, being able to borrow means that the services people depend on from the government continue,” explains Stan Collender, a partner at Qorvis Communications. If Congress fails to vote for a limit increase, it could lead to much higher taxes, a reduction of expected services or both.

T-bills considered secure, for now

The U.S. government raises money by selling Treasury Bonds, or T-bills, which promise a small return on the money borrowed. As long as the purchasers are confident that the loans are safe, they are willing to trade security for small returns. However, if national loans are defaulted on, the global marketplace will lose faith in the dollar, causing foreign goods to become more expensive. The marketplace would reflect that lack of confidence by an immediate increase in cost of fuel, electronics and many other items dependent on overseas suppliers.

Jobs could be at stake

Jobs could be at stake not only for those on the government payroll, but for those in the private sector as
well. “We don’t know what will happen because this hasn’t happened before,” says Collender. “But if the debt ceiling isn’t raised and the government runs out of cash, at some point the president may decide he has to stop doing certain things, like paying government contractors, for example. That may not sound like such a big deal, but it is if someone in your family, or someone you know, is working for that contractor, or for the supplier of that contractor, or if that contractor is a big employer in your neighborhood or your state.”

Wall Street remains confident

At this point, the market seems to be ignoring the debt ceiling debate, confident that a solution will be reached. Banks are still lending money, interest rates remain low and the stock market is relatively stable.

Sources

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By stuartpilbrow / Flickr / CC-BY-SA

With today’s economy and worldwide events it is hard to remain calm and stress free. Our homes, lives, families and jobs are all affected and under high levels of stress. It is important to learn what triggers stress and what can help lessen the impact it can have on us. There are things we can do to help manage and control certain stressful situations.

Stress in the workplace

For many, a stressful workplace or even fellow workers that you may have a problem with can bring an onslaught of stress or tension. Instead of keeping silent and allowing it to build up and cause you to suffer even more, it could be alleviated by talking about it with your employer to find out if something can be done to remedy the situation.

Respectfully speak up for yourself

Unless you say something, your employer may not even realize there is a problem. Sometimes talking about it and airing it out is just what you need to remain calm and continue to work productively in your work environment. It may require looking into resources that can give some helpful tips of how to go about it.

Other stress triggers

Money itself can also be another stress trigger. Many people live paycheck to paycheck and barely make ends meet. This can be a real challenge. It is hard to balance our “needs” from our “wants,” but it is essential that we strive to do so. It may be that we need to make sure to be more conservative with our utilities and even get the most food for our money by using coupons and finding out what stores are having the best sales. In some circumstances people are relying on short term loans online to get cash til payday.

Communication can minimize stress

Another important quality that can help with stress is to learn how to communicate. This is especially true in the family unit. If all in the family work together to help make things less stressful, it can help immensely. When each person does their part, no matter how little, it helps relieve some of the challenges that may arise. Talking about problems and feelings will help keep the stress at a minimum and give more understanding into the problems that can overload your life and threaten your peace within your home environment.

Image: Mikael Altemark / Flickr / CC-BY

We are all aware that hunger exists in poverty stricken lands. However, lack of food is becoming a more and more challenging problem even in large cities these days. Many are worried what the future will look like regarding this problem.

Hunger affects all

Many people don’t even think of the possibility that our food supply could one day run out. Yet when an emergency crisis does happen, people run to get food supplies, and often the stores can run out quickly. Prices can suddenly be raised to double overnight. Applying for a pay day loan or cash advance my be too little too late to cover the skyrocketing prices.

Gasoline prices raise the cost of food

We can see how this could happen by the gas prices jumping sky high not to long ago. Because it is something everyone needs to get to work and other places, people still had to buy it. Many at this time took the bus, rode bicycles and cut recreational traveling down.

Will food run out before gasoline?

Food is something we need to live, so running out of food is not an option. The rapidly growing population has many concerned that the distribution of food suppliers will no longer be able to keep up with the demand. This is turn affects the safety and quality of our food. As more and more cities continue to grow because of the increase in population the more challenging it gets.

Hunger is brought about by many things

Food distribution problems could be affected by many things. Some of these are weather related like tsunamis or drought. It can even be affected because of war. The land we once had for farming is getting smaller and smaller with the growth of cities. This forces the suppliers of food to drive longer to get it, and this means higher gas prices so it raises the price of food to consumers as well. When an emergency does occur the poor will suffer even more severely.

(Photo: Hailgumby/Flickr/CC BY-SA)

When it comes to shoplifting, some thieves may rationalize that it really doesn’t matter what they steal because department stores mark up their prices anyway. They may feel that it isn’t really hurting anyone, as they are not actually stealing from someone in particular. The truth is someone does have to pay for it somewhere along the process.

Do retailers gouge with huge markups?

Many store owners do mark up the prices anywhere between 25 and 50 percent, but this is mainly to cover additional operating expenses such as taxes, repairs and utilities, to name a few. So although stores may buy products at a retail rate, the profit they earn is very small, perhaps as low as 3 percent. It is the store owner who ends up paying for any loss, and there are typically no payday installment loans available to the self-employed during cash flow crunches.

Shoplifters try to justify their stealing

Some shoplifters may justify or reason with themselves by thinking the items they steal are petty items with little value. Here’s an example: Suppose that all a person stole was a single pack of gum. But what if several individuals stole a pack of gum each? Because of the lack of profit, the business would need to sell several additional packs to balance it out. This is detrimental to small businesses that are barely making it in today’s market and economy.

When people steal consumers pay

It is not only the merchant who will pay, but consumers will have to pay more to make up for what people steal. Think of how sad it is for those who only have a set amount of money to live on, such as those who are disabled or retired. Think of all the hard working individuals who are still living on short term loans for people with bad credit to make ends meet. There is also the risk that some stores may have to go out of business because they have lost so much money and can no longer operate due to shoplifting thieves. When this happens, people may have to travel farther to get needed medicines because the one they used to go to went out of business.

Shoplifting is a crime

Shoplifting is a crime, and the thief will pay if caught one way or another. Sometimes you may be caught by managers working within the store and only be given a warning, if lucky. However, most would want to teach the shoplifter a stern lesson and have harsher punishment rendered perhaps by calling the police and having them arrested, even if it was the first time. We live in a time where many small businesses are barely breaking even, so they will most likely not put up with it. They want to teach shoplifters that there are consequences to their actions, and those results can be severe.

(Photo: Purple Slog/Flickr/CC-BY)

Can parenting make you money-hungry? Some can’t deny their children’s requests to have whatever they wish, and many go through great lengths to keep them happy. Often if parents didn’t have a lot of material possessions when they were children, they try to make up for it by ensuring their children are able to get whatever their little hearts desire. Another factor could be that they are afraid that if the kids are not given what they want, they will ultimately lose their children’s love.

Parenting influenced by the media

To make matters worse, the media play a big role in enticing children with the newest gadgets, computers, iPods, games, the latest fashions in clothing, etc., in television commercials. They are also seen in glamor magazines, teen sitcom shows, at stores and on friends wearing the latest cool brand of clothing. This adds more pressure on parents to make sure their children fit in with the rest of their peers or community. This can often cause parents to take out no credit check payday loans to cover short term spending sprees.

Raising spoiled children

Experience has shown that when children get whatever they want, they tend to become spoiled. The children, instead of showing they care and love their parents, become very unappreciative of the efforts their parents have shown in providing the gifts they want. Many of the items or latest gadgets they do receive are quickly forgotten and are no longer used or wanted.

It has often been observed that when children get whatever they want, whenever they ask for it, they typically won’t have the needed skills to cope with denials or disappointments as they grow into adults, simply because they do not understand the hard work involved in earning money. They have never had to obtain an installment loan for people with bad credit to make ends meet for the week. They may not be able to make it financially on their own and would then be forced to rely on the parents to help them through all the different phases of life. It can affect their ability to handle money matters in a marriage, and all of these are due entirely to the fact they never learned how to during their early years.

A decline in worker productivity after several quarters of gains could be a sign that employees are maxed out and companies need to start hiring. Think Stock photo.

A drop in worker productivity for the first time in 18 months is actually good news for the struggling U.S. economy and high unemployment rate. Companies that slashed payrolls during the recession have been raking in profits by getting more output from fewer workers. But the latest report from the Labor Department on worker productivity may indicate that employees have reached their limit. If that is the case, U.S. companies will have to engage in job creation to maintain growth and boost the flagging economic recovery.

Worker productivity in an upside down economy

Worker productivity declined at an annual rate of 0.9 percent in the April-to-June quarter after posting large gains throughout 2009, the Labor Department said Tuesday. The Associated Press reports that U.S. worker productivity is the key ingredient to boosting living standards. It allows companies to pay workers more because of increased production without raising the cost of goods. In most cases a slip in productivity would be a troubling sign for the U.S. economy. But economists believe the unemployment rate has become a threat to the companies that are slashing their work forces. If they start hiring, the job creation will give households the income boost they need to increase consumer spending, which accounts for 70 percent of economic activity. And that would ultimately lead to more demand for those companies’ products.

Workers sacrificed for corporate earnings

For companies that may have believed the U.S. had entered a period where output could keep climbing without bringing people back to work, CNN reports that the latest worker productivity numbers are a dose of reality. Companies did more with less during the worst of the recession. But in the latest Labor Department report, the amount of hours worked rose at a faster pace than actual economic output. Nariman Behravesh of IHS Global Insight in Lexington, Mass., told CNN that companies probably “overdid it” with layoffs during the recession. He said that if for no other reason than keeping employee morale up, companies may have to hire more to avoid worker burnout.

Job creation needed to thwart deflation

Job creation is likely to remain weak for the next few months, Behravesh told CNN. But he’s optimistic that the private sector may be adding more than 100,000 jobs a month by the end of this year and 150,000 jobs a month by the middle of 2011. But ABC News reports that weak productivity is in line with other signs that U.S. economic recovery is losing momentum. The overall economy grew at only a 2.4 percent annual rate in the second quarter, down from a 3.7 percent rate in the first quarter. Some Federal Reserve officials worry that with the unemployment rate stuck at 9.5 percent, employers will seize the chance to push wages down for those still working and prices will follow suit, possibly triggering a vicious cycle of deflation.

Some tell-tale indicators

Research shows that in the most recent recessive years, movie ticket sales have increased steadily. According to the National Association of Theater Owners, tickets have sold 9 percent more this year than they did last year the same time. Though consumers are cutting back on many other things, their movie entertainment is not one of them.

Rise in gardening

Another indicator of how the economy is doing is the number of households who grow their own produce. This year there has already been a 19 percent rise in homes with their own vegetable, herb and fruit gardens. That adds up to an estimated 43 million people gardening this year. Although “fun and recreation” are cited as motivators, most homes agree that saving on the price of food is the main reason they are maintaining gardens to their homes.

Online dating services & romance novels see more activity

During tough times, dating services see more activity. It seems that during recession periods, more Americans are looking for their significant other, or at least someone to go to the movies with. Romance novel sales pick up drastically during recession periods, as well. Consumers are looking for debt relief and if they can’t find it literally, they will find it temporarily through books. Harlequin, a leader in romance novel publishing, noted a huge increase in sales in 2008. Their revenues were up by 32 percent and on a consistent rise the beginning of 2009. Similar increases occurred during the hard times of the early ’90s

The alligator economy

Another unusual indicator of how the economy is doing is the alligator economy. Louisiana houses Savoie’s Alligator farm, one of the largest of its type in the nation. They sell gator skin hides to tanners, who in turn create high-ticket items for the likes of Louis Vuitton and D&B. Spokesperson for Savoie’s reported that they have “not sold a single hide since November.” This is another economic indicator that the economy is not doing well and consumers are cutting back on luxury items. Gator farmers are losing money quickly because of lack of sales, and they need to find innovative ways of maintaining the hides they do have.

Signs of the times

These five odd indicators are revealing signs that give economists a picture of how the economy is fairing. If consumers are seeking debt relief, it may seem odd to look at alligator farming numbers or sales in romance novels, but over time, they have both proven to be accurate indicators of the state of the economy.

The remaining manufacturing projects involve more of a reliance on computers and sophisticated machinery, rather than manpower.

More and more Americans mistakenly believe that nothing is officially “Made in the USA” anymore. Though they are right that a lot of things did move to offshore manufacturing, there are still some items the U.S. is keeping for itself. The recession was hard on the manufacturing industry, and about 2 million workers lost their jobs. That alone created a huge portion of the unemployed public that had to struggle to get by. Part of the problem with manufacturing jobs is that most likely many of those positions will never return, and that leaves an entire group of workers who may never find equitable work to financially sustain themselves. It may take a considerable amount of effort and searching for them to regroup and reenter the market with a completely different set of skills.

Are things made in the U.S.?

The answer to whether things are still made in the United States is yes. Although toys, clothes and many electronic items are brought in from overseas due to the lower costs, there are still things that start and end in this country. American factories are making things—Ford trucks, airplanes, appliances, computer chip components and fertilizers are all examples of things U.S. companies are creating. Experts note that there has been a notable decline in manufacturing jobs, but not a decline in manufacturing. In fact, many companies are churning out just as much in product as they did pre-recession, but in different ways.

Some of the manufacturing projects that have remained in the system involve more of a reliance on computers and sophisticated machinery, rather than manpower. Many low-cost items like toothpaste and cleansers are manufactured with intricate machinery systems and require only a few humans to monitor consistent flow. Despite the huge loss of jobs in 2008 and 2009, overall the manufacturing sector’s output rose from 1987 to 2007, as reported by the Bureau of Economic Analysis.

How things are changing in the job force

With the decline in manufacturing jobs, the market is making a shift. The service sector is the fastest growing market in the U.S. Jobs like financial planners, pay day lenders, real estate agents, lawyers and health care providers are all booming. The job markets for these positions are stable and in demand. That demand is projected to continue to rise in coming years. With baby boomers aging, they are going to need service-oriented workers to help them with decisions, care, and planning.

Where does manufacturing fit in now?

Though service jobs are on the rise and taking over in terms of immediate openings, it doesn’t mean that manufacturing jobs are out of the picture. The market is merely shifting. Manufacturing is still a huge part of the US economy. It is the best industries for people without a college degree to enter. Not only are wages good, but benefits can serve a breadwinner well. In addition, jobs in the manufacturing sector cater to people who like the old school method of working their way up in a company. No one is going to start as a nurse and work their way up to Chief of Staff. However, a worker on an assembly line can aspire realistically to work their way up to manager.

Where manufacturing is going in the future

Manufacturing is not dead in the U.S. Experts are cautioning that the country may be too reliant on overseas industrialization when it comes to high-end products. The repercussion is that the U.S. may be forgoing its research and development by outsourcing technical manufacturing to other countries. In particular with the world “going green,” the U.S. has to remain competitive and on its feet when it comes to bringing new advancements into the market. Time will tell what happens with the manufacturing world, but it is far from gone. The US will shift and change but most likely will start to bring high-end companies into the mix. That’s great news for the millions of workers who lost their jobs during the recession.

Many people are unsure of the work the stimulus has created thus far.

A new study is showing that Americans are losing confidence because they see debt relief as a far off dream. According to a Washington Post/ABC News poll of 1,000 people, “Overall, 52 percent now say the stimulus package has or will succeed in restoring the economy, down from 59 percent two months ago.” Experts are saying that consumers are watching the economy and their personal finances closely to see signs of resilience. Logically, it’s the states that were hit hardest by the economy whose residents are the most pessimistic about the stimulus.

The effect of the stimulus

Part of the problem with the stimulus is its seeming lack of saturation to the personal level. Although the stimulus was $787 billion, the majority of the money is still working its way through large industry giants and corporations. It hasn’t yet reached the hiring level, where people would see the biggest advantage. Vice President Joe Biden said, “150,000 of the 3.5 million jobs that are supposed to be saved or created under the program are in place.” Most Americans, hearing these numbers, are despondent, rather than satisfied. Claire Montage of Hollywood, Calif., stated, “One hundred fifty thousand jobs is nothing compared to the millions of jobs needed. … I’m not going to get excited about less than a 10th!”

Montage’s sentiments are shared by the population. With a recent projection of the unemployment rate estimating to be well over 10 percent in upcoming months, many people are unimpressed with the work the stimulus has created thus far. People are reading signs and not seeing the huge changes the stimulus promised.

People want everyday changes to become apparent

Dr. John Fieldling, psychologist for Moser College, stated, “People do not believe what they can’t see. And, they can’t see many signs of a recovery, no matter how the media writes about it.” Mentality is everything with the public, and it would be difficult for them to believe that things are getting better when they are still struggling with unemployment, debt relief, making payments and finding extra cash. The lists of things that people are mentally focusing on are largely untouched by the stimulus. Stimulus money may be helping large corporations restructure, but homeowners aren’t seeing the immediate benefits.

The Obama administration wants to find some consumer support and confidence. However, that’s a difficult task. Economist Larry Rudd stated, “People are not going to take well to hearing about large corporations recovering…they want to be able to pay bills and see prices come down in the supermarkets. They want everyday changes to become apparent.” This is the key to gaining support. If the Obama administration is to gain consumer support, it will take time. There has to be enough time for the stimulus to work its way through the layers of the market and reach the consumer level. Rudd added, “It will take time for visible signs of recovery.”

Economic recovery

Consumers are losing their confidence because of the growing unemployment rate, prices of goods and consistent problems with debt relief. Their everyday struggles are compatible with a negative assessment of the economy and its lack of growth. In turn, that contributes to a negative assessment of the stimulus. Only time will tell whether or not consumers will change their views of the stimulus, but one thing is for certain — until they see the actual changes, people won’t be satisfied.

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Tracking the economy

December’s activity was high. The Consumer Report’s shopping index for December was 14.1. By January that index fell to 10.9 and in February, it has already fallen to 6.9. That makes it well below the pre-holiday index and is proving that consumers are being frugal and conservative with their payday cash. In fact, the 6.9 index is the lowest level the index has fallen since it’s been tracked.

Consumers in financial difficulties

Part of the decline in the shopping index was a loss of major appliance buys. During the holiday season consumers were buying stoves, washers, dryers, refrigerators and personal electronics in large numbers. Now, they are drastically slowing down their purchases. Contrary to the move, though, is the fact that consumers are also suffering less financial difficulties. According to Consumer Reports survey, Americans are doing better financially. The biggest difficulty Americans had was affording medical bills and/or medications. That number is now down by 2% since the end of last year. Looking at medical bill affordability is a major factor in tempering the economic state and how consumers are managing financially.

The Consumer Report’s overall index

Consumer Reports calculates an overall index that is comprised of five individual indices: the Sentiment Index, the Trouble Tracker Index, Stress Index, Retail Index and the Employment Index. Here are the numbers reported:

• The Sentiment Index. The Sentiment Index gauges the optimism and pessimism of consumers. Those in the 18 to 34 range were the most optimistic about the future, as were those with incomes of over $100,000. The most pessimistic Americans are those with less than $50,000 in household income and those over 65 years of age. This index was steady throughout February as compared with January.
• The Trouble Tracker Index. This is an index that tracks the economic climate and how many difficulties are predicted in the near future. This index has shown a great improvement over the past month. It was at its height during the height of the recession.
• The Stress Index. The stress index gauges just that: the amount of stress consumers feel due to the economy. That index has fallen since December but stayed at the same level as January. It’s an indicator that though people are feeling better about the economy, they aren’t yet embracing true change. Consumers continue to be reserved in their assessment of the market.
• The Retail Index. The retail index declined after a high in December. It is now leveling off and remaining conservative. It’s returned to pre-holiday season numbers.
• The Employment Index. Finally, the employment index is still low. This reflects the number of job losses in the market. It is indicative of an economy that eliminated a large number of jobs and has yet to replace them.

The future of the indices

The new Consumer Report’s indices are accurately gauging the state of the economy. Over time, it’s hoped that each one will improve considerably, but until they do, consumers are left to continue managing through the difficult times. Though it is hard, many are rallying, getting serious about their finances and hoping for the best.

Saving habits have changed

Studies are showing that the economic downturn changed consumers’ savings habits. The hefty unemployment rate and the lack of credit options worked together to create a difficult situation for consumers. Adding to that problem were the mortgage issues and the suspension of corporate 401k matches. Combined, all these things caused Americans to have to tap into savings and that move left them with diminished nest eggs for the future.

The result of a decline in savings

The decline in savings is set to make some serious changes in the future of Americans. First of all, without a nest egg squared away, many people are already accepting the need to postpone retirement. No longer are workers looking to exit the workforce in their mid-60s. In today’s world, they are looking for a much longer work-life that extends well into their 70s. A growing number of Americans say they will continue in the workforce for as long as they are able.

What seems to be changing as the years go by is less Americans are focusing on saving and more are focusing on getting by. Experts attribute the change in focus to the credit lending crash of the recession. Prior to the recession, many people relied on credit for emergency bills and monthly expenses. Lenders extended unwarranted credit to sub-prime borrowers and handed out millions in funds to consumers who had little ability to realistically repay the money. When the recession began, lenders quickly shifted their priorities to mitigate loss, rather than extend more credit. That mitigation meant increasing interest rates to unmanageable levels, cutting limits and tacking on fees. Lenders were focused on maximizing their income due to the huge number of defaulted loans. Increasing the cost of credit only caused more consumers to fall into trouble.

Consumers focus on debt

Saving cash now is a priority, but many Americans are just getting back on their feet financially after suffering huge losses as a result of the recession. Surveys are showing that most money is still going to paying down debt. Consumers see the problems debt can create and are suffering through heightened interest rates. They understand the cost of credit and are trying to get rid of it as quickly as possible.

Retirement in the future

Experts say that retirement savings, including Social Security benefits and pensions, should add up to 80% of pre-retirement income. They tell customers that making that 80% goal is not difficult. In general, most consumers can meet the goal with a strict rule to save 7-10% of their monthly payday cash now. Though budgets are stretched, most Americans can reasonably find the money to save. Most savings goals for retirement can be reached if people understand how to manage time and budgeting.

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Looking to refinancing

The growing reality in today’s economic climate is that home values have plummeted. People who had paid religiously into their mortgages for years were surprised when the economy ate away at the equity they thought they had amassed. That is the stickler when it comes to refinancing. People have such low equity that it hardly qualifies them for a refinance. Add to the equity issue the fact that lenders are much stricter now post-recession and banks are adding higher fees, and it makes for a sector of homeowners who have few options.

The new states of interest rates and home value

The survey done by Credit Suisse showed that about 39% of homeowners in the 30-year fixed-rate segment currently have interest rates of over 7%. A good number of those people could bring their interest rates down two full percentage points if they were able to refinance at current rates. Despite the possibility, however, the number of refinance applications in January of this year was lower than it was this time last year.

Another chronic problem the recession created was the increase of underwater mortgages. This is a condition where homeowners owe more on their houses than what the property is worth. Recent surveys show that almost 25% of all homeowners are currently underwater. Of course that also makes it impossible for them to refinance and find relief. The reality of the banking world is that banks want collateral to back up the loans they are making and with drastically diminishing home values, they aren’t willing to take on the risk. A homeowner, who has no equity on the books, is left with few options when it comes to maneuvering their debt and finding fast cash.

What is being done to help

The overriding issue when it comes to refinancing is how things can change to make more homeowners qualify. Most experts agree that due to lenders creating stricter rules, they are undermining the government’s efforts to allow homeowners to use the lowered interest rate advantage. It defeats the purpose of sustained lows in interest. Fannie Mae and Freddie Mac are also adding their own fees in an effort to raise revenue and mitigate losses. It’s easy to see how mitigating losses and maintaining low interest rates are counteracting one another. Fannie Mae and Freddie Mac are seeking a balance between taking on the risk of low-credit scoring homeowners and giving more people access to credit and refinancing options.

In the future expect more homeowners to be able to refinance and find fast cash like they did in the past. There is a caution, however, that those with drastically low credit scores most likely will not be able to refinance, regardless of what changes lenders make. Though the government and lenders are working together to create more customer-friendly climates for those with less-than-perfect credit, it will take much longer for low-credit customers to find any relief.

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Ravenswood, West Virginia suffers a blow

Ravenswood, West Virginia was a city whose main industry was manufacturing. The state mass produced various commodities for the world and employed thousands in its one big factory. When the recession began, so did layoffs. They continued until the plant officially shut down in the beginning of 2009 and now residents are wondering if recovery will every happen. Unfortunately, Ravenswood residents are not unlike millions across the country who sat by helplessly watching their city fall to the harrowing economic times of the past 18 months. The question they have though is: Will their city be able to recover, or is it now relegated to remain a ghost town?

The many lagging cities

Throughout the US there are a wide range of cities that are taking a wait-and-see attitude towards recovery. Here are some of the hardest hit cities: (http://www.usatoday.com/news/nation/2010-03-01-townhangingon_N.htm)

• Madawaska, Maine. Last month the city’s workers agreed to an 8.5% cut in their wages in an effort to keep the paper mill alive. The mill employs over 1,000 people of the city’s population of 4,000. The cut, though necessary, is not good news for the city and many people believe that the worst is yet to come.
• Glenwood, Washington. This is a small city with a population of just over 500. The city’s forest products industry is taking a staggering hit due to flat lumber prices and increasing land costs. Recovery is almost impossible according to analysts because of the city’s over-reliance on just one industry.
• Georgetown, South Carolina. This is a larger city than the other two. But, with a population of just over 9,000, it still is not impervious to the problems of a lagging economy. The city’s steel mill closed last year and caused the unemployment rate to skyrocket. With few alternative options, the population is at a loss when it comes to finding jobs without relocating.

The crux of the issue

Though a lag in pay can thwart anyone’s motivation, the real problem for workers in areas hit hardest by the recession is an uncertainty. When a city’s main industry is stifled so ubiquitously, it’s hard for the population to regroup or find any hope in a future turnaround. For example, Ravenswood’s residents knew the closing of its main factory was coming for months. Some jumped ship early-on, while others remained hopeful. Once the plant closed, that hope was all but gone. Now people are seriously considering relocating because most likely the jobs the plant provided will never return.

Analysts check in on the problem

Many analysts are studying the new post-recessionary condition carefully and reporting back with little optimism. Mostly the issue is that the country has never had the same pressures as it does now. In past years, if a farmer lost his or her land to fire or drought, he could pick up and move relatively easily to another location. A steel mill worker who was laid off due to a plant closing could move to a new city for a job. In today’s market, that is no longer a possibility for hundreds of thousands of workers. States that rely heavily on manufacturing are all having problems with recovery and workers are hard-pressed to find employment. Experts expect workers to have to do a complete 180-degree turnaround, career-wise, and only those who manage to do so will survive. Those that don’t may remain in financial turmoil for many years to come.

Changing model of retirees

Borrowing money, using savings and family’s financial aid may be necessary for senior citizens moving into retirement homes. Gone are the days of retiring in the comfort of a luxury facility overlooking golf courses and close to shopping malls. In today’s post-recessionary economy, nursing home operators and states are rethinking their decisions. According to home builder Del Webb a new survey is showing that Arizona, Florida, South and North Carolina are where aging baby boomers will be heading.

A new study on retirement

In the past, moving to a warm climate was the priority for those looking to retire but now the concern is primarily financial. The number one fear for seniors is maintaining their cost of living and that is opening the door for more states to attract the retired public. The Del Webb study showed that about 35% plan to move to a new home when they retire and about half plan to relocate to a different state. Samuel Ford, economist for Economy.com, said, “People going into retirement now, or in coming years, have gone through the worst recession since the 40s. Their nest eggs and retirement funds are tapped out or stretched at minimum, and that is causing them to rethink their retirement plan as a whole.”

What retirees want now

For consumers who want to relocate, there are also specific needs. According to a survey conducted by the National Association of Home Builders, those who are fifty-five years and older want the following in a home:

• Maximum storage space
• In-unit washer and dryers
• Easy-open windows
• Garage door openers
• Porches and private patios
• Large bathrooms
• Attached garages

In lieu of these things, they are giving up island work areas, wood burning fireplaces, exercise rooms and separate showers. Hi-tech additions are also no longer a priority. Rose Quint, the NAHB VP for study research, (see http://www.nj.com/business/index.ssf/2010/01/seniors_rethink_their_dream_ho.html) said, “The older buyers are frugal, probably on a fixed income and so expensive tech items are not that big on their lists…Retiring consumers don’t want to rely on borrowing money from families or personal loans to make their monthly budgets. The stress to them isn’t worth it.”

More care included in the home purchase

Another interesting result of the survey is that retiring homeowners want services added to their purchase. John Migliaccio, director of research at MetLife’s Mature Market Institute, said, “Very telling is that the younger group of mature consumers reported enthusiastically that they want services like home maintenance and repair as part of their next home purchase, along with services usually connected to older householders like housekeeping, onsite health care and transportation.” The group also wanted a larger variety of activities and social interaction built into their retirement communities.

Retirement in the future

Overall retirement is changing due to the economic recession. Though it is over, it has left millions of Americans with depleted savings and now they are looking for more cost-efficient areas and situations to retire in. Rather than borrowing money and relying on family help, the baby boomers are opting for cutbacks in retirement. It is telling of how the economy changed public perception and how as a whole society is remembering well the financial difficulties of the market.

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The federal government made an announcement that the deficit for fiscal 2020 will reach $1 trillion. For years now the government has made predictions on the deficit, making it higher and higher every year. Though consumers hear it, they don’t always know how to interpret it for their own situations. Here is a listing of some of the alterations a huge deficit is going to make in consumers’ lifestyles.

Some tips to handle deficits of the future

The reality is that huge deficits pose problems for everyone. One of the problems is going to be with long-term bonds. There are two ways to handle deficits: issue long-term bonds or print money. Both can create inflation and a financial climate that is difficult for everyone to manage. It’s the long-term bonds that are posing the most risk for consumers in the future. If inflation rises, that causes everything to rise in cost. The strain on consumers can be unbearable.

Another issue is that a huge deficit has to be financed by those who save in emerging markets like China. Unfortunately, those emerging markets are in the midst of their own inflation and that can have a detrimental effect on how much saving they can do. It may mean that interest rates will have to rise in this country to make investors want to keep money in the US.

There is also the fear of further loss in value of the American dollar. Experts caution that US investors should be wary of diversification. There should be a reasonable amount of investments in overseas stocks and bonds to maximize returns. Relying solely on the American economy could prove to hamper any big improvements in investment revenue. Investors should consult with their financial advisor to assure their portfolio has a wide enough range to be profitable over the long run.

Consumers also should secure a 30-year fixed rate mortgage on their properties. The interest rate is closely tied to the rate on 10-year treasury bonds. Those are expected to rise and that means that sooner or later, so will rates on mortgages. Getting locked into a reasonable mortgage now will be a huge advantage for consumers in the future. Because of the recession, interest rates are at an all time low and anyone with the desire to refinance or buy a home should take advantage of low rates.

Finally, using tax shelters is one of the most important tools consumers can use to protect their money when deficits rise. Putting as much money as possible into a 401k or 529 college savings fund can help to protect finances. The future of huge deficits means that the government will have to find money from somewhere. That means most likely taxes will increase and having money stored away in tax shelters can mean the difference between losing money to taxation and saving it for life’s necessities.

Careful financial planning for the future

The huge deficit means future problems for consumers who aren’t aware of their options and who don’t take considerable pains to change their ways of managing money. It isn’t difficult, but it does take some determination and focus for consumers to maneuver the raging waters of today’s financial climate. With careful planning, however, consumers can assure that their financial futures will be secure.

Similar to almost any loan, there are particular issues a customer ought to realize prior to starting the process of taking any kind of cash advance. Therefore, we should start out in the beginning.

Precisely what is a Cash advance?

A cash advance is usually a short-term loan which is offered by numerous brick and mortar and online lenders. The time period of the loan is generally until your subsequent pay day, and there’s commonly a high interest rate which is added to the sum borrowed. The purpose of these kinds of financial products is to offer a quick response in case of a fiscal crisis. This is among the causes that the rates of interest tend to be so high, because cash advance loans were by no means designed for being long-term choices.

We have a consumer drive economy

The fact is that our consumer driven economy has come to identify payday loans, generally known as a cash advance, as being more of a possibility when one discovers themselves in a circumstance of genuine financial hardship. Long ago, US consumers saved a percentage of each and every paycheck and deposited it into a bank account or certificate of deposit whereby it was easily accessible in case of a financial emergency. Present day consumers basically borrow to meet any financial requirements they have to meet. Countless consumers will commonly utilize a credit card in case of an emergency and just charge what they have to have and payoff the excessive charges over the course of a number of years. Less fortunate people, that don’t have funds saved in the bank and have no credit card funds available, wind up using a cash advance where the substantial interest rate is billed right away – at times becoming up to many hundreds in costs to use cash for a two-week timeframe.

After substantial economic growth, the economy is in recess

Throughout the growth of the overall economy in the USA, there was significant discussion regarding payday loan companies taking advantage of the under-privileged, but since financial times were great, nobody was ready to pay attention. Today the downturn in the economy is now much more widespread. Much more folks are getting themselves in a place where they have got to survive wage day to wage day, and a number of them are looking towards these kinds of online payday loans with the attitude that they must obtain the funds immediately. The difficulty using the immediate satisfaction attitude is it results in excessive charges, which cost the borrower money they genuinely need to put back into their bank. Because of this, the individual ends up in a never ending cycle of bills that becomes extremely tough to break free from.

Cover your basic needs before all else

People ought to make sure their basic living expenses are covered first. Also, once they obtain their paycheck, whether or not it’s small or large, they should set a little something in reserve and start to build some sort of financial savings. As a result, they will decrease their excessive dependence on short-term payday loans that could ultimately deny them of more of their cash flow. Furthermore, people pondering that they might require a short-term payday loan need to carefully study the different cash advance lenders widely available and determine what one will be ideal for their needs.

Once you can sleep at night after fixing your financial problems, think about your physique. I have been doing the Insanity Work Out and am feeling great. Shaun T is a mad man and is better than any of my personal trainers.

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Those who are unemployed are not the only people facing difficulties while looking to borrow money. States providing unemployment benefits are quickly running out of cash and are looking at the government for loans to bail them out. The Washington Post reports that 40 state programs will need $90 billion in loans to keep unemployment checks going out to people. This is completely a direct fall out of the recession, which will force the governments to either slash benefits or raise taxes.

Too Much Stress on the States

Many states that are the hardest hit with the massive wave of unemployment are now feeling the stress of not enough money to pay out. This is expected to get worse over the coming two years as 25 states have already borrowed $24 billion, with these figures expected to reach $90 billion borrowed from over 40 states by the year 2011. The effect that this will have on the economy can only be imagined, but it seems that it may only get worse. Some states that are under immense stress are already talking about tax raises and cuts in unemployment benefits.

Is there Hope for the Unemployed?

For the hundreds of people who are unemployed, this may only get worse. The lack of jobs and the rise of inflation will send people into taking actions they wouldn’t normally do, including incurring debts from credit cards, short term loans and even delayed payments of utilities and mortgages in the hope that conditions will improve. Even for people with jobs, this news will be something that is not welcome on the eve of a new year, as they may have had to borrow money to make ends meet. If additional stress is created by the government, they will be left with little choices than to start abnormal activities as well, just to survive.

Better Jobs, Better Economy

Creating jobs is easier said than done. Making tall promises with no back up plans may come easily to most politicians, but convincing companies to adhere to their promises is the difficult part of creating a better economy for all. Blame can easily be transferred to companies that have outsourced jobs to developing countries, but asking them to close down their overseas operations and return back to the country will not be enough. Companies will not want to return to pay higher production costs compared to their currently outsourced operations. And, if they were to do this, then prices will be raised even more just to cover their operation costs. Tax cuts that were announced seem to have little effect on them, and the government will need to come out with a plan to ensure that jobs stay in the United States by offering companies more than just tax cuts.

The Future – not a promising outlook

The public will be facing the worst of the coming years from rising taxes, lower benefit payments, and the growing need to borrow more money from any available sources in order to stay afloat. Sooner or later they will fail, unless drastic measures are taken to improve the economic situation.

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Looking for New Opportunities

These are definitely tough economic times and most of us could use at least a little quick cash. A lot of people are out of work and, even though they would like to get a job, they cannot seem to find anywhere that is hiring. While it can be frustrating to sit and wait for an opportunity to open up, if you have a computer and internet connection (or access to them at a friend’s house or local coffee shop) you can find some money making prospects online. Of course, these options are not just for those who have been laid-off or hit by downsizing; they are also great for stay-at-home moms and dads who want to bring in some extra cash for the family, students who want to earn a bit of money in their spare time or retirees who would like to supplement their pension. Not all of these are huge money makers, but they do offer some extra money and some have great potential.

Surveys – One Option, but Probably Not Your Best

If you begin a search for online job opportunities you will undoubtedly come across one offer or another to complete surveys for money. You must be careful when considering getting involved with survey sites. Many are quite legitimate, but some are rip-offs and scams. When you are looking to make some quick cash the last thing you need is to get swindled out of more money. The first thing you need to keep in mind is that you should never pay to join a survey site or for a list of survey sites. There are plenty of sites claiming that you can takes surveys and make more cash than the CEO of a large company. Do not believe them. There can be a bit of money (and free samples, draw entries, etc.) in taking surveys, but they will not earn you large amounts while you sip margaritas by the pool. Also, the people offering lists of big money making sites are just trying to get your money. Sure, they will sell you a list of survey sites, but all of the information they have can be found for free.

What have you got to Sell?

Most of us have items around our house that we can do without. In fact, most of us have items that would do us some good to have cleared out. Why not sign up for a free account on Ebay or a similar auction site and make a profit by selling these things? If you enjoy this way of making money you can either find a wholesaler to buy additional items from to sell for a profit or you can try to pick up items on the same site or others for free or cheap and turn around and sell them for a profit.

Are You Creative?

If you are artistic or crafty you can open up an online shop on a site like Esty.com. On these sites you can list your handmade items under your own store name and with your own prices and policies. Much like Ebay, the site will keep a portion of the money for each item you sell, but they offer a platform to display your items and a steady flow of potential customers.

Stay Organized and have Fun

No matter which of these paths you decide to try, being organized is a must. Keep track of sites you have joined and any orders, sales or offers you have received. Relax and have fun; you may be on your way to making quick cash while you sit at home in your pajamas.

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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.

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Despite the high number of foreclosed properties flooding the housing market right now, both banks and builders in some cases are finding it impossible to sell houses. Reuters reports: “U.S. lenders and builders are turning to professional auctioneers to help them unload the unwanted real estate in a hurry.”

Hiring a professional auctioneer to unload a property is a last resort for companies looking to unload homes, and usually it means the seller will lose money on the property.

Winners and losers

The foreclosure auctions are great news for people looking for a bargain on a home, but they are bad news for banks and builders. And a home on the auction block means someone out there has already received bad news: Your home is foreclosed. Move out.

A silver lining is that lenders have started recognizing that they could stand to lose more on the home if they foreclose than if they work things out with the current homebuyers. Many banks now are waiting for owners to go through debt consolidation or debt management instead of foreclosing homes. The Mercury News explains why:

More than 2,000 Santa Clara County homeowners received foreclosure notices from their lenders in September, but a relative few actually had their homes sold at auction.

Foreclosed homes going once, going twice…

The situation in Santa Clara is present all over the country. Reuters reports that at a recent auction in Chicago, a seven-bedroom home was put up for auction.

“Any interest in this home at $7,000?” fast-talking auctioneer Renee Jones asked the crowd. “If not, we’ll move on.”

I find it tough to believe that no one wanted to buy a seven-bedroom home in Chicago for $7,000 (could it be a typeo?) but nevertheless, foreclosed homes for sale at auctions and online are at the highest numbers in recent history.

It ain’t over till the auctioneer sings

The number of foreclosed homes for sale hasn’t topped out yet. Auctioneers are gearing up for more business, according to Reuters:

Hudson & Marshall, one of the biggest auctioneers in the market … and its rivals say they are gearing up for more in the coming months, convinced that a moratorium on foreclosures earlier this year only postponed what they believe is an inevitable avalanche of new repossessions.