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.

Image from Flikr.

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.

There are a lot of different factors that could be signs of the recession easing up. Though in some sectors we’re still seeing evidence that the recession continues to get worse, a few rays of hope are starting to shine through.
CNN Money reports that companies are starting to recall previously laid off workers, giving them back their old jobs. This is a good sign that economic conditions are improving. Paired with the stable unemployment rate, I’d say there’s definitely potential for some prosperous days ahead.

Other economic indicators

JP Morgan Chase has lost a lot of money in its credit card division, and this company sees that as a sign that the recession is not getting any better, especially because it is continuing to lose money. However, I think it’s a sign that people are getting smarter about credit and discovering alternatives like installment loans instead of using their credit cards like there’s no tomorrow.
I think the fact that people are using credit cards less even though there are strong indicators that economic conditions are improving is another piece of evidence to support the idea that people are simply changing the way they spend money and use credit. Here are some statistics from CNN Money that show we’re headed for better economic times:

• About 38% of employers have indicated they anticipate some type of recall of cut workers, according to a recent report from the Labor Department.
• General Motors, Ford Motor, Dell, AK Steel and truck maker Oshkosh, have already reached out to previously laid-off employees to meet rising demand.
• In a survey, 18% of laid-off workers who landed new positions were rehired by the employer that let them go, up from 13% in 2005, according to Right Management’s outplacement services, a division of Manpower.

Not out of the woods yet

Though some companies are able and willing to rehire their laid-off workers now, the economy is still pretty unstable, and we will definitely still see more layoffs before the recession ends. But it’s important to remember that laid-off workers really can and do get hired back by their former employers.

Getting laid off is tough. It makes people scared, depressed and usually very angry. However, remember that if you get laid off, the way you handle it could come back to haunt you later. It’s easy to have fantasies about telling off your employer and saying all of those horrible things you’ve imagined saying to your coworkers, but finding a job is not easy, and if you have the chance to get your old job back while you’re still looking for another, wouldn’t you want to take it. So always leave companies on a good note. Don’t count on being rehired, but make sure you consider the possibility that it could happen and behave accordingly.

More from CNN Money:

There are many upsides to rehiring former employees, according to management professor Peter Cappelli of the University of Pennsylvania’s Wharton School of Business. The positives include savings on recruiting and training costs, maintaining associations between customers and employees, and the fact that the rehired employee doesn’t need an introduction to his or her colleagues.
But redundant firing and hiring can also be costly for the company, particularly in the form of severance payments, and can even be disruptive to workforce performance.

Music-centered publication Vibe Magazine has announced it will cease publication and close down immediately. The publication, like most other U.S. publications, has seen its advertising revenue fall.

A spokeswoman for Vibe Magazine said the staff would be informed of the closure today. Vibe Magazine was one of two large, popular music magazines in the U.S. that focused on hip hop, R&B and rap. Now, The Source is the only remaining nationwide hip hop and R&B magazine.

Why is Vibe Magazine closing?

It seems Vibe Magazine’s situation is all about the money now. Much like rock magazine Blender last year, the announcement that Vibe Magazine would close came suddenly. There was some indication that the magazine was in trouble, as it had previously decreased its circulation and moved employees to a four-day workweek. The New York Times reports:

In a memo to staff members announcing the closure, Steve Aaron, chief of the Vibe Media Group, wrote that for months, the company tried in vain to either find new investors or “to restructure the huge debt on our small company.”

“The print advertising collapse hit Vibe hard, especially as key ad categories like automotive and fashion, which represented the bulk of our top 10 advertisers, have stopped advertising or gone out of business,” he wrote.

Vibe Magazine online

Quincy Jones and Time Warner started Vibe Magazine in 1993.

Vibe Magazine changed hands back in 2006. It was originally started by Quincy Jones and Time Warner in 1993. However, the magazine was sold to Wicks Group in 2006.

There is no word on what will happen to Vibe Magazine’s web site. Many large publications that have stopped printing still maintained an online component. Blender Magazine still maintains its web site and covers music. Many daily newspapers around the country have gone the same route.

Vibe spinoffs

Besides publishing the monthly magazine, Vibe has published books on hip hop and R&B as well. For a few years, Vibe Magazine put out a sister publication called Vibe Vixen, which focused on females in hip hop and R&B. That publication only lasted from 2004 to 2007.

Vibe Magazine also has held the annual Vibe awards since 2003. One year ago, Vibe Magazine held the Greatest Rapper Alive contest. The crown went to Eminem, who won based on reader votes.

More later

The Washington Post also reports that it’s unknown whether Vibe Magazine’s web site will be preserved, but more information will be in by the end of the day. As of right now, the web site is still functional and reporting current news. Hip hop and R&B coverage rival, The Source, already went through bankruptcy restructuring last year.

Also unknown is how many jobs will be affected. Vibe Magazine told advertisers in February that circulation would be reduced in July from roughly 800,000 to 600,000. During the last half of last year, Vibe Magazine reported a circulation of 818,000, but advertising revenue has fallen as the economy has been in turmoil. Many advertisers have turned to internet advertising rather than print. The music industry as a whole has also seen profits fall.

Pomigliano d’Arco is a town of about 40,000 inhabitants in Italy. It lies northeast of Naples and quite near to Mount Vesuvius, once the scene of some real fall-out. The town basically has one industry – automobiles. And it also has only one kind of car – Fiat. The entire town relies on Fiat for its very life.

Disaster country

Mimmo Vacchiano stands outside the locked gates of the Fiat car plant and says there is going to be a disaster unless its gates reopen. And the people in this part of Italy know all about disasters. “If this plant closes, there’s nothing else here, only unemployment.” But there is something else in the town and that is organized crime on a massive scale. “We can choose which way to go - unemployment, crime or a volcanic eruption,” says the 48-year-old father of two.

We live in panic

“We’re living in panic. Every morning I promise myself that today is the day I will take a Personal Loan and buy railway tickets for my family so we can move to Northern Italy where there is still hope. Here in the south job opportunities are zero. This place is going to be like Pompeii after Vesuvius blew her top.”

Unemployment

Unemployment in Pomigliano already runs at nearly 20 percent and Fiat’s temporary closure of the plant - in a bid to slash costs, same as other major automakers – has brought the town to its knees. Fiat employs 5,000 people directly and the plant provides jobs for 20,000 if suppliers are taken into account.

A shut down?

The Pomigliano workers are among the most militant in Italy. They have already clashed with police and are now warning the government not to do anything rash with the Fiat plant. “Shutting this plant would cause a revolt,” said Vacchiano. The Fiat CEO has said he will only meet unions once he has a clearer idea of the possible deal with Opel but, with Fiat idling the plant for weeks at a time, workers say monthly welfare payments of about $950 are not enough.

A melt down?

The volcano of Mount Vesuvius cannot be completely disregarded. The famous eruption in AD 79 led to the destruction of the Roman cities of Pompeii and Herculaneum and the death of 10,000 to 25,000 people. The volcano has erupted many times and is still considered active. Today it is regarded as one of the most dangerous volcanoes in the world because of the 3 million people living close to it and its tendency towards explosive eruptions.

The auto industry’s woes

CBS aired an overview of the state of the auto industry yesterday on their newscast and the senior editor, Joe Wiesenfelder, put the subject most succinctly:

• If fuel prices weren’t high and the economy got soft – they might be OK.
• If fuel prices went high but the economy was still strong – they might be OK.
• All these different factors together leave them with losses at every turn.

Back in Italy

Things are tough and things are going to get tougher. We built a car industry to save the world and make it a better place to live. Now that industry is sick and we’re all going to get the plague.

Eric Schmidt CEO of Google

In response to the economy, small businesses are looking to the installment loan. Like all businesses in the economy, small businesses are stretching to find customers. Unfortunately with today’s market, customers are hard to come by.

Most Americans are feeling the recession one way or another.Whether it’s a job loss, cut in pay or adjustable interest rate increase, people are having to be more innovative than ever to make payments. This frugality is affecting small businesses dramatically because with people cutting their spending, businesses are having to cut back also.

It’s not always possible for the small business to cut back without utilizing lay-offs and serious financial restructuring. This puts more Americans in the position of having to strictly budget themselves. It’s a vicious circle that is only hampering the economy from recovery.

Google and the Economy

“No company is recession-proof,” stated Google CEO Eric Schmidt. “We are absolutely feeling the impact.” In the beginning of 2009 Google was able to make a profit, but only because of cut-back tactics like lay-offs and winnowing expenses. The company is doing better than most businesses because their marketing is minimal cost compared to media other companies use. But doing “better” isn’t the same as thriving. The company recently experienced two-rounds of job cuts and shaved its capital expenditures down by 40%.

Google is a household word and has made headlines for their tremendous revenue, almost all of which is from advertisements. Executives are predicting that the company’s Q2 and Q3 will not revive since the past has shown that these are weak times in their growth. With a recession added to the mix, Google is expecting to have a lean 6-months to get through.

In addition, consumers are being more and more cautious with spending and taking time to shop around for good deals. Google relies on ad placing by consumers, but the amounts of clicks to turn into profits is drastically lower than it has been. For example, it now takes 15 to 20 clicks to sell, as opposed to the normal 10 to 15 in the past. This consumer wariness caused price per click on search ads to fall 13% in Q1.

Where and when will small businesses find relief?

Installment loans may be the most viable option for small businesses since any real improvement in the recession is estimated to happen mid-2010. So for more than a year, businesses are going to be forced to maneuver through the economic struggle and find ways to cover their debt. With new customers hard to find and old customers cutting back, income is threatened.

The only relief is to find non-traditional lenders and take advantage of their availability. Non-traditional lenders work with customers to create manageable and quick loans that are not dependent on credit ratings or collateral. Customers can apply easily and their application status is almost immediate. If qualified, getting money can be a life-saver to the small business that has no other options for funding due to the market.

The cash crunch

If an industry giant like Google is suffering, all corporations need to be careful. Small businesses are feeling the cash crunch more than ever in today’s economy and looking for innovative ways of managing debt. The installment loan may be the easiest answer.

Despite more drastic turns like lay-offs and expense-cutting, businesses are still finding it difficult to manage. Creative funding options offer a much-needed relief to organizations in need of help meeting their budgetary deadlines.

While the U.S. economy continues struggling to show signs of life, U.S. and international banks are tightening the noose on consumer lending, spurring the growth of payday loans. Prognosis for an economic turnaround early this year rapidly turned to fantasy as the January 2009 quarterly Federal Reserve Board Bank Survey showed bank consumer lending practices were squeezed even further. Times of economic pressure certainly prove that banks are among the first to act. Any small banking industry ripple of policy change can cause a tidal wave in the financial community.

53 U.S. banks and 23 U.S. branch offices of foreign banks responded to the Reserve Board in their study which concluded that the bank industry standards have further reduced consumer credit limit, increased interest rate floors and consumer credit review for short term loans. The banking crunch has inevitably led to the phenomenal growth of a second tiered loan sector including cash advances and payday loans, which are less stringent on their approval standards on unsecured personal consumer loans.

Domestic & International Banks Further Reduce Credit Limits

Between 45-60% of bank survey respondents reported raising credit score thresholds in order to approve consumer loans or new credit card applicants. As the credit score threshold increases, more of the general population requiring a short term loan falls below the new cutoff point. More banks indicated that they reduced the number of installment and short term loans approved for consumers who did not meet the increased requirements. In essence, banks want to provide short term consumer loans for their select few. Banks are pulling through this recession economy by not taking any chances with ordinary consumers. Joe Average definitely needs to seek out his money elsewhere.

Bank Policies Raise Interest Rate Floors & Decrease Equity Loans

With the mortgage financial crisis looming in the near past, equity loans have floundered, dropping a near 70%. Consumers who in the last couple of years could have used the equity in their homes must now be subject to similar stricter guidelines comparable to consumers lacking homes and means to borrow an installment loan. Interest rate floors have increased across the banking industry, leaving critics of payday loans and cash advances with little to say.

Bank Consumer Loan Requirements Tedious

Convenience and timing in obtaining a consumer loan even if credit requirements are met are also a limiting factor in processing bank installment loans. The average processing time for a bank to approve an unsecured personal loan is 5-7 business days from the date of application. Requirements on consumer loans typically call for a credit rating of 650+ while a whopping percentage of the national population may fall under that score.

Banks also typically require the presence of the borrower to sign for the application as opposed to cash advance and payday loan options, where borrowers are able to electronically sign documents and find out readily if they are able to qualify for the loan. The slow timing process of bank loan application documents also account for consumers withdrawing their application requests and acts as an additional factor weeding out a segment of installment loans. If consumers are applying in an emergency situation to obtain money needed in a couple of days, bank loans would be almost out of the question.

Phenomenal Growth of Second Tiered Loan Sector

Since the 1990s the second tiered consumer loan system including cash advances and payday loans have phenomenally flourished. Consumers holding jobs could obtain money readily even while they lacked the credit necessary to obtain an equivalent loan amount from traditional banks. The traditional banking sector has criticized cash advance and payday loan lenders for charging excessively high interest however, traditional banks have exhibited the same characteristics through traditionally “justifiable” non-sufficient fund fees charged at a typical rate of $25 per transaction.

If the interest on a payday loan were $50 as compared with 6 transactions from the bank charged at $25 per incident (total $150), which company would be charging excessively high fees? Traditional banks have existed much longer than the relatively new second tiered sector but the cash advance sector offers different levels of convenience, flexibility, options and speed in their loan approval process. After all, the creation and growth of cash advances and payday loans fulfill a need that is currently not being met by the traditional banking industry.

Mortgage loan modification can help you keep your house.

If you have a whole bunch of little bills that have piled up into overwhelming debt, debt consolidation is right for you. However, if you just have one big, overwhelming debt, and it’s your house payment, it’s time to seek mortgage loan modification.

When to see mortgage loan modification

The housing market, increasing unemployment and a shrinking economy have caused record numbers of homes to go into foreclosure. Some people fell victim to subprime mortgages and some lost their jobs, but the end result is the same.

Many families who were lucky enough to hang onto their houses so far could still be in danger of facing foreclosure, and some are just getting buried by their mortgage payments. If this is your situation, debt consolidation is not the best solution for you.

Get your loan modified

The government has put programs in place to make mortgage loan modification easier than ever. It’s called the foreclosure prevention plan. Mortgage loan modification can lower your mortgage payment by reducing your interest rate, lengthening your term and in some cases even reducing the principal amount owed. And you can read all about it in my eBook: “Loan Modification: The Doorway to Keeping Your Home.”

Combine and conquer

There’s nothing that says you can’t get both. If you have mortgage payments that are too high plus several smaller bills that need to be consolidated, morgage loan modification plus debt consolidation could be a winning equation.

Payday loans may help consumers solve temporary money problems in a volatile market. The current recession is quickly being assessed as a long-term situation that consumers and businesses will have to maneuver through carefully. A quick-fix is not realistic. Though there are a lot of options available, it’s estimated that until mid-2010 consumers won’t see a true stabilization of the market or experience any relief. Americans’ buying patterns and businesses’ income statements are giving a clear picture of the dilemma the economy is in.

What are buying patterns telling America?

According to the Federal Reserve, consumers’ spending makes up two-thirds of the U.S. economic activity. Unfortunately for the country’s financial situation, those consumers are being more frugal than they have in years. Three giants of consumerism, Wal-Mart, Burger King and Capital One Financial, all reported a declining profit in March. While they don’t make up the entire American business world, they are a good cross-section of the economy and their income statements can give an accurate picture of the market.

Burger King reported an 18% drop in shares in March and has noted a great lull in business, according to analysts. Americans are opting to buy in bulk at discount grocery stores and cook at home, rather than splurge on fast-food. They realize that cutting corners means stretching budgets and fast-food is no longer a viable option.

In March, retailers reported a 1.1% decline in sales. Wal-Mart CEO Mike Duke confirms that after payday, most Americans are left with very little discretionary money. The store’s sales will be up at the beginning of the week but when Friday comes, buyers are looking for payday loans and cash advances to make ends meet. A few more tell-tale signs of the economy can be seen with consistent buying patterns. Vitamins and diapers for example, are purchased in bulk at the beginning of the month and trickle down to smaller sales at the end. This is an indication of how people are portioning finances in the recession.

What does credit card activity tell Americans?

According to Capital One, their charge-off rate, which is made up of accounts that the company categorizes as non-recoupable, is steadily increasing for U.S. credit card holders. The same thing is happening with American Express. Their charge off rates have grown from 8.6% in February to 8.8% in March. It’s estimated that the soaring unemployment rate is making it next to impossible for consumers to maintain themselves, much less pay off debt. Economists speculate that mid-2010 is the anticipated timeframe when the economy will begin to recover and consumers will be able to manage their finances again. Until that time, Americans have to be frugal and budget-conscious every time they go to the store and leave only with the necessities.

How can you save yourself?

Payday loans can help to level income throughout the month. Consumers are spending more at the beginning of the month and trying to stretch what is left over at the end. This isn’t always possible when emergencies happen, i.e. cars break down, children get sick and water heaters break. Any number of things can happen to a household and put them in need of extra money until the next payday. One good option to have is the payday loan where the application process is simple. If you are approved, the funds are in your pocket within 48 hours and the money is deducted from your account on the next payday. You can save yourself the worry of how to pay bills by looking into cash advance options.

The House of Representatives

Short term loans have been used by small businesses for years to overcome debt. Because of the economy, however, the government is looking into alternative ways of jump starting businesses. The House of Representatives dusted off an old bill and suggested using it to help small businesses and low-income employees, but does it offer the solution needed?

The proposed payroll tax holiday

Illinois Republican representative Aaron Schock and Idaho Democratic representative Walt Minnick had an interesting proposal. The two house members suggested a bill that would offer small business owners a break from paying payroll taxes. Under this bill, businesses with 50 or fewer employees would not pay Social Security or Medicare taxes for a six-month period. Employers and employees pay 6.2% Social Security tax and a 1.45% Medicare tax all year long. The hope was that small business and lower-paid employees benefited from suspending these taxes. According to the Joint Committee on Taxation, over 60 million taxpayers had tax returns with payroll taxes that were greater than their income taxes. This bill could potentially affect 5 million small businesses and over 34 million employees according to the National Federation of Independent Business.

If some business owners planned on paying off debt, or catching up on bills with this payroll-Medicare suspension, they would have to think again. The Schock-Minnick bill required owners to reinvest the “saved” money back into the business, whether that meant hiring new workers, investing in expansion, or some combination of the two. For example, if the business saved $80,000 in payroll-Medicare tax suspension, then they could use $50,000 to develop new positions in the firm and $20,000 in new machinery. The remaining $10,000 would be taxed. The goal was to use the money to make the business more productive, thus reinvigorating the economy with new jobs and organizational growth.

There were some arguments against the Schock-Minnick bill. The main concern was how would the government enforce reinvestment? What measures were needed to be sure money was being put back into the business? Some challengers of the bill also argued that any tax savings to the average small business in this economy would most likely be needed to cover payroll and keep the business operating on a day to day basis. Reinvestment is the last thing on business owners’ minds during a recession. They are more focused on financially staying afloat.

What is the answer for small businesses?

Although the government is brainstorming creative options, the short term loan may be the best option for small businesses. One reason is that the amount is negotiated with the lender and satisfies both parties. It isn’t dependent on how the small business is currently performing, or on how many employees it currently has. Another reason is because if the business is approved for a short term loan, they can use the funds anywhere they want. A lender is not dictating what or how much they can apportion to various sectors of the company and they won’t be penalized for using the money “incorrectly.”

Careful spending of the short term loan

If you are approved for a quick short term loan, use it wisely. Any time a small business needs to reach out for additional funds, care should be taken when deciding where the funds are most needed. Lenders have made the loan process simple and if you’re approved, the money should be available to you within a very short period of time. Have a step by step plan outlining where the funds will go to avoid misuse.

While unsecured personal loans have been around for a while, there are other options investment firms are trying to bring to the economy. Wall Street has plans to save the market, invigorate the economy and quell peoples’ fears of investing. But are they realistically able to reach the novice investor or help his financial situation? A lot of their solutions play on people’s need for security and impulsive nature, rather than truly create ways for everyday people to pay off their soaring bills.

Wall Street and the common man

Chief Investment officer of GenSpring Offices, Andrew Mehalko said, “When people are fearful, Wall Street comes out with products that try to make them feel good by promising safety.” He states that this year ‘principal-protected notes’ are expected to be hot-selling investments. The big promise is that they protect your initial investment and may produce an increase in value. Taking a closer look at these notes however, brings to light their true nature. Sure they will return your investment, but they also have hefty fees that can cut into a large part of the ROI you may have gained. Remember the old rule of thumb when investing: low-risk, means low returns. Though the promised security of principle-protected notes can be attractive, they probably won’t give you the investment value you are looking for. If your purpose was for them to grow your money so you can pay off more bills, you may be sadly disappointed.

Typical reactions to the local news

A lot of casual investors are obsessed with the latest financial news. It’s good to be informed, but focusing on every change in the market can be detrimental. Trying to navigate every up and down the economy brings can be tiring and can cause you to lose money. We have a volatile stock market, a fluctuating bond market and a recession to deal with. Keeping up with all three can prove a harrowing experience for even the most seasoned investor, much less the novice. If you’re trying to respond to immediate changes, you may be left with an investment, less huge deductions in trading expenses. Do yourself a favor and stop watching TV and reading newspapers in an effort to find a way to pay your bills.

How do you pay bills in this economy?

An unsecured personal loan may be the most reasonable way to go. Let’s say that you took a pay decrease at work. Though you’re bringing in less money, your bills are the same. What should you do? Or, let’s say that your car breaks down and you need to find the cash to pay for it immediately? More and more people are looking to personal cash loans, rather than trying to play the market, to meet their financial needs. Although Wall Street is trying everything they can to help consumers, many of their solutions are one-sided and force the investor to use any money they would have earned, on fees. It’s a better option to look for loans that have reasonable interest rates, clear-cut rules and can still adequately pay off your bills.

Will the economy revive?

Although the economy is in a recession, it will revive but not without a lot of restructuring and rethinking investment processes. A lot of people relied on Wall Street for their investments, and this is proving to be a trap in today’s market. Wall Street has its own agenda that isn’t necessarily looking out for individuals who need to pay their bills. To truly meet your financial needs and stay at an advantage, an unsecured personal loan can be a much more reliable solution.

In the current economic slowdown, the possibility of the dreaded “r” word, retrenchment, being used in your place of work is a real possibility. Reports of widespread job losses and company closures are all over the news at the moment.

U stands for Unemployed

However, the picture is not all doom and gloom but a lot depends on you. During these uncertain times, when employers are reviewing or cutting their budgets and are looking at new ways to further optimize their workforces, it is important that employees focus on making themselves indispensable to their companies. Consider how you can add value in the role you are currently fulfilling, over and above what is expected of you.

Put the organization first

Unfortunately, some businesses have no alternative but to reduce staff, but employees who are seen to be adding value will be low on the retrenchment list. Employees who are eager to take on new challenges will also be valued in these tough times.

Be flexible. Accept roles that might not be your first choice or best suit your qualifications in the short term, rather than risk being unemployed.

Alternatives for finding work

In times of uncertainty, temporary employment opportunities increase as employers naturally take a cautious “wait and see approach” when considering their permanent recruitment plans.

This could be your chance. Taking on a temporary position in a new organization gives you the opportunity to expand your skill-set and bolster your resume with relevant work experience, which will benefit you when applying for a permanent position in the future.

Check for those sectors where there is a shortage of workers and see if you can somehow fit in. Think about a career change and consider moving into a field which is crying out for qualified and talented workers.

The recruiting agencies

Make contact with a reputable recruitment agency to help you. Here are some tips from one such agency:

Your resume

• Update your resume.
• Make sure you emphasize all of your skills and achievements.
• Your resume is the first opportunity to sell yourself, so make sure you seek advice if you’re not sure where to start.

Your interview:

• It is very competitive out there so make sure you research the company beforehand so you stand out and come across as more knowledgeable than other interviewees.
• Think about accepting temporary employment.
• Rather than be out of work, accept a temporary position in a different sector or line of work that you’re trained for.

Being an out-of-work worker

Being out of work in normal times is difficult and challenging, but you have some choices and you have contacts you can call on. You can remain optimistic and be sure that if you don’t find something this week, it will be next week.

Being out of work in times of heavy recession is another story altogether. It may take months and months before you find something that is half decent. And then when you do receive an offer it will not be in your exact field and you will have to make all sorts of irritating adjustments to your life.

But this is when anything is better than nothing.

As the government’s Toxic Asset Plan rolls out to deal with the present macroeconomic situation, the only question on everyone’s mind is whether the stimulus plan will actually work or go down as yet another misplaced cash advance.

The Financial Times has summarized the PPIP toxic asset plan in one line,

“Critics say that would leave the same amount of toxic assets in the system as before, but with the government now liable for most of the losses through its provision of non-recourse loan.”

The President’s Stand

Mr. President is very sure that this latest attempt to heal the wounded U.S. economy will work. What remains to be seen is how and more importantly, when. American people are tired of the short-term, quick fix solutions thrown at them by the previous Bush government and now this administration. Now, they seek more than just a huge cash advance. There’s no headroom for creating any more bubbles to redress the critical problems afflicting the economy.

Stimulating or Averting Plan

A closer look at the Toxic Asset Buyout Plan reveals that matters could get far worse than they are for the world economy at present. The debacle of unbelievable debt pileups for America’s leading banks and the crashing housing market still hasn’t reached the elusive end.

Obama’s $1 trillion Toxic Asset Purchase Plan suggests banks buy the loans that have gone bad or may go bad due to the fall in asset values. This serves as a great opportunity for large banks to clean up their balance sheets but proves to be a risky strategy for smaller, marginally solvent banks. A noble idea, Mr. President, but it might not work.

A Flawed Mission

While the concept is good, it suffers from various flaws. First is the problem of scale. Most economists believe that there are more than $1 trillion worth of assets that fall in the ‘toxic’ category. Secondly, the plan is only as good as the partnership between public banks and private investors. After receiving billions of dollars in stimulus funds, America’s leading banks are considering buying toxic assets sold by their rivals under the new plan. Without any meaningful reduction in the total amount, the toxic assets will just shift from one bank to another. Up to 85% of the value of toxic assets is being guaranteed by the government on a non-recourse basis.

Public Expectations

Even if banks jump to the insufficient bait, the plan does too little for the millions of people who have lost their jobs and haven’t got any stimulus check in the mail to pay the bills or the next loan installment. Sadly, it’s just another brick added to the pile resting on the taxpayer’s shoulders. In the meantime, middle class America continues to wait for a realistic, sustainable and respite-offering solution to their state of despair.

Instead of using taxpayer funds to deal with the irregularities of financial markets, the government needs to make constructive headway for creating more jobs and encouraging savings by U.S. households. As they come up with sophisticated cash advance plans to bail out A-list banks and multinational companies, the U.S. government is only depleting the already bleeding economy.

As of now, people can only hope to receive some part of the benefits promised by the Toxic Assets Purchase Plan, a fund too small to fill the gaping hole they have dug through decades of overspending and make-belief boom.

Times are Tough Everywhere!

Every individual born in this world has his or her own needs, desires and dreams and they try hard to fulfill all of these desires so that they can make a comfortable life for themselves and their family members. But not everyone is able to meet the financial needs of their family, especially in these tough times.

Recession has led to an increase in inflation rate (increase in the cost of living) which has increased the expenses of the people while keeping their incomes the same or even reduced their incomes. Recession has affected many people financially and has left no option for many but to opt for loans either from relatives, banks or personal loan companies in order to meet their daily household expenses.

Personal loans during a Recession

Personal loans during a recession are the best option for many people as they can get one rather easily and it can help them to meet their personal financial needs. There are certain terms and conditions to be followed in order to get a personal loan, but they are very simple and easy to understand.

The basic reason to get personal loans is easy accessibility to cash within the shortest possible time. It is a financial aid to help some of your monetary problems get solved. These loans prove to be of great help for the people as they enable the borrower to meet their urgent financial needs.

Need for personal loan

Personal loans can be used for various needs such as house repairs, medical needs or other emergencies. These loans can be used for many other purposes which solely depend on each individual. Online lenders have different kinds of personal loans depending upon the needs for the person.

Personal loan for various purposes

There are high numbers of job cuts in various companies making the unemployment rate rise. This makes personal loans even more important as people are even using them in order to pay for the day-to-day cost of living. So at this point in time, personal loans play a very important role in society. A person can feel the need for personal loans for various purposes. Some of them are follows:

• An urgent need of medication in the house for a family member
• The house needs a sudden repair
• To pay the credit card bills
• To support the financial needs of the family if you have lost your job due
• To pay your mortgage loan payment on time
• To make a payment on your mortgage loan to keep your home from going into foreclosure
• To pay off your monthly electricity bill, mobile bill or any other utility bill
• To pay your landlord with the rent on time

Easy personal loan

One can apply for an online personal loan easily from personalmoneystore.com. If you qualify, it only takes a few hours to process the loan. Thus, personal loans are playing a very important role for those people who are facing the financial crunch or problems due to the effects of recession.

I was in Dublin for a meeting about 2 years ago and it was absolutely booming. New projects and new construction were everywhere, the streets were full of people and you couldn’t squeeze into a bar. Even though my trip was paid for, I had taken extra money that I got with a No Fax Cash Advance from the Personal Money Store in case I wanted to do some shopping for the wife and kids.

Irish downturn is hitting man and beast

Now the recession in Ireland has reached every corner of the economy. The sudden collapse of the Irish Republic’s economy has hit hard – both for its people and some of its animals. At a sanctuary outside Dublin, the staff has seen a surge in abandoned horses. Squire is safe now but some racehorses have not survived the downturn. Squire, a pure-bred draught horse, is lucky. He was found half-starved on scrubland. Now he may find a new home.

Racehorses

It is a sad story for the racehorses which were bought in the good times by wealthy businessmen as a passport to social status. They are now being dumped. Being too wild to keep, they have to be shot. The Dublin Society for the Prevention of Cruelty to Animals say they have seen four times as many rejected racehorses this year as last, and they estimate altogether there are 20,000 horses in the country that nobody wants.

A spokesman said, “When people don’t have spare cash, the horse is the first thing to suffer; they’ll either be abandoned or driven into someone else’s field.”

The docklands

What a far cry from the heady days when all along Dublin’s docklands were signs of growth. Today rows of cranes and empty office buildings are all that is left of a building boom which fueled the much admired “Celtic Tiger” economy. The collapse in credit and confidence has left Ireland in a perilous state.

One of the major problems was the toxic brew of a construction industry too close to government, and regulators captured at the gate. The poster child for failure is the Anglo Irish Bank. The Irish government nationalized Anglo Irish in January amid fears it would collapse.

An angry public

Public anger is being directed at the government, which presided over the uncontrolled boom. It is deeply unpopular and the opposition is putting ministers under fire for not seeing the storm coming.

In Dublin’s famous O’Connell Street the long line of cabs is a visible sign of the shrinking economy. The drivers complain there are too many cabs – more than in New York, they say – and they have to wait more than an hour for a fare.

The problem is caused by lack of regulation, a rising tide of jobless seeking to earn a living as a cabbie and fewer customers. It is a situation which looks set to get worse.

The huge deficit

Bailing out the banks, along with plummeting tax revenues, now means the government faces a ballooning budget deficit, which reached $3.4 billion in the first quarter of this year.

As a member of the Eurozone it is under pressure from the European Central Bank to bring the deficit under control, so is expected to announce tough public spending in its emergency budget.

We wish you the luck of the Irish!

Spring has sprung in this part of the world and the warmer weather, the change to summer time and last week’s possible bottoming out of the stock exchange has put a whole new look on the world. Let’s use this change to transform our dark and dreary thoughts about money and the world’s finances. Enough with the gloom and doom.

Spring is Sprung

I took a walk through town this morning and marveled at nature. She’s optimistic – there are new shoots on the trees. The air is filled with the smell of orange blossoms (meaning money next winter), new little flowers on all the olive trees (meaning more money next winter). Nature’s not giving up and neither should we.

I may even fulfill a nagging desire and buy myself a digital camera so that I can email pictures of spring around the world. A new camera will mean a new Payday Loan, but that’s okay, I’m sure my optimism will keep my job going, although it’s not looking good at the moment.

What I do

I work as a sub-contractor for a contractor who works for Intel. It sounds a bit like a daisy-chain affair but the relationships are very professional. In good times this was a great arrangement and I have had constant work since the mid 90’s. Some years were frantic and I never got to bed at all at the end of the day, and other years were slack and I had to turn to other means to make money. The last such bad patch was in 2003 when I found myself completely unemployed for some months until work started to trickle again.

Then it took off in earnest and the last 3 years have been hectic. Now it has stopped dead while Intel regroups in the face of the recession. So I find myself an odd-job man again.

What the town does

I’m sure I’ll manage, but I’m not so sure about Intel-town. The main Intel plant is situated in a small town in the south of the country. It was a ‘Nothing-Town’ before Intel arrived. Then it took off. Contractors and visitors flooded in, restaurants opened, cabs rushed up and down, sandwich bars appeared, a small shopping center was built, then a larger shopping center, then a major supermarket. Then Intel built a second and larger fab, and the town settled down to its status as the semi-conductor center of the world.

Intel launched educational facilities for the children of the town and training programs for the adults and became a responsible and important part of the town.

There was talk that maybe Intel would expand or even build a third fab, who knows? With a company like this in town anything is possible.

What now?

In the face of the recession Intel has turned off the tap. Normal production continues but there is no new development work. Perhaps they’re working less hours in the production halls where the local men and women work and that’s good news. But there are lay-offs and casualties and that’s bad news.

Let’s hope that a touch of spring comes to Intel-Town soon.

Sadly the economy is in a downward swing and more people have to rely on a cash advance loan to keep their homes out of foreclosure. As difficult as it is to think of resorting to borrowing money to cover the mortgage payments, it is far less expensive than the alternative, foreclosure.

Keep in mind that in addition to losing any equity in your home, you will also be faced with foreclosure costs, the expense of finding somewhere else to live, and the loss of your credit rating. For some people, it can be detrimental to their feeling of self-worth thus creating a sense of depression and worthlessness that makes it difficult to regain financial security.

Consider your options

With economics being as they are, many people are in a position at the present time where they lack the funds to meet their mortgage payments. Although it can be a stressful situation, it does not have to be hopeless. It is important to look at all of your options rather than to throw up your hands in despair. You want to sit down and discuss some options and hopefully avoid filing bankruptcy just to save your home.

There are other ways to maintain your financial security for the short term such as discussing the situation with your lender to see what kind of terms you can work out. The economy is not in the best of shape right now with several states reporting double digit unemployment figures so lenders are not likely to want to take your home into foreclosure and face a potential loss. A cash advance loan can help you keep the lender appeased until you can work out more permanent and suitable arrangements.

Making the right choice

Look over your financial situation and your potential for income stability before you make any kind of a decision. With so much unemployment facing the country, you do not want to take advantage of a short term cash advance loan unless you know you are going to be able to repay it.

These short term loans are usually not intended to extend beyond 14-120 days, so you have to keep that in mind when you are searching for a way to find relief from your current financial crisis. There are several things you want to do before making a decision:

• Evaluate your current financial situation
• Analyze your future earning potential
• Review your circumstances over the past to determine why the pattern for financial instability exists
• Develop a plan that will allow you to reconstruct your debt and maintain financial stability

There is no one solution that is going to work for everyone but the one thing that is essential for everyone is the analysis of the situation in order to determine the best way to approch the situation and prevent your home from going into foreclosure. The sooner you can make that determination the sooner you will be able to work out a solution that is more permanent than what a short term loan can offer.

In today’s economy, many people are using payday loans to make ends meet. No matter how good you are at budgeting, sometimes emergencies come up. Everyone has had to deal with a broken-down car, a doctor’s bill or a spouse’s layoff. Faxless payday loans are a quick and easy way to get the money needed.

Is a payday loan for you?

It’s important to understand that payday loans are not for every financial need. They are meant to be quick solutions to emergency financial requirements. Using them outside that purpose can be damaging.

The reason for this is that your next paycheck will go to repaying the loan. That means you won’t be getting your next paycheck because it will be deducted by your payday loan company. If you aren’t ready to handle the pay-back, then maybe a payday loan isn’t for you.

On the other hand if you truly just need emergency money, and pay back is possible to budget for, then it may be the perfect solution. You are given the money up front and automatically repay it when your next pay period comes in. Simple payday loans systems are very helpful if used the right way.

Requirements for payday loans

There are a lot of misunderstandings with payday loan requirements. Some people think bad credit will keep them from getting any type of loan. This is false. Payday loans, because of their structure, rarely depend on credit histories. The requirements normally are an active bank account, a good 6-month work history and some references. If you can provide these, you are well on your way to getting a payday loan.

Another thing to be aware of is that your loan amount will depend on your current pay. Borrowing way beyond your limits isn’t possible. This is another safeguard that works for you. Since you can’t over-borrow, like you can with other loans, your ability to repay the loan is not threatened.

Misunderstandings about payday loans

As mentioned earlier, the main misunderstanding of getting payday loans is that good credit is needed. These types of loans are paid back within a few weeks, so credit checks aren’t necessary. Another misunderstanding is that high interest rates cost consumers outrageous sums of money. This also is untrue because interest plays its way into repayment when the lending time is extended. A payday loan is so short that there isn’t a ballooning, cumulating fee to deal with.

Finally, people tend to hear the word “loan” and think there will be huge amounts of paperwork and reading to sift through prior to signing. In the case of the payday loan, this is also wrong. Simple payday loans are clear, concise and quick. That’s what makes them so popular in our economy.

Your payday loan representative will explain in detail the process, but there isn’t a lot of room for misunderstanding. What you see is what you get with payday loans. The company gives you upfront money, you agree to pay it back on a specified date, and they cash your post-dated check on your next pay date.

The result of payday loans

Payday loans are a great way to overcome financial emergencies. The upfront money, given with the minimal amount of hassle, can save you from a broken-down car, a sick family member or a temporary lack of funds. As long as you know the rules and how the process works, your experience using payday loans should be hassle-free and quick. Enjoy the peace of mind.

With the current state of the economy, many people are looking to short term and payday loans to get through the days. Although it may only help you make it until the next payday, it is certainly better than doing without something you need.

The current economic downturn has sent many people into bankruptcy or at the very least has caused them to lose valuable points on their credit score, so a standard bank loan is out of the question for many people. However, that doesn’t mean they have less needs for things than those who have managed to maintain their good credit in spite of the economy.

Some have it easier than others

If you take a look around, you will discover that in spite of the state of finances throughout the country, some people have managed to make it through better than others. Does that mean those people have planned better for the storm? That may be partially true but for the most part it means that some people are in a better financial position or have managed to obtain a more secure and better paying job than others.

Does that mean they have opportunities that others don’t? The reality is that pretty-much everyone has the same opportunity but others just happen to be in the right place at the right time as luck would have it. Unfortunately getting the best job does not always mean knowing the right information but knowing the right people. As the cliché goes, “it’s not what you know but who you know that matters.”

Keeping your head above water

For those who are not in the best situation financially, it can be a struggle just remaining afloat or keeping your head above water. Sometimes it means robbing Peter to pay Paul, a vicious circle that can drag you back under water if you aren’t careful. Even using a pay day loan can get you into trouble if you aren’t careful, especially if you choose those in your local community that charge higher rates than online sources.

In addition, avoiding the local money stores reduces the possibility of borrowing from another one to pay off another. These short term loans are intended for just that—helping you with a small cash loan until you are paid again.

The popularity of short term loans during the recession

The current recession has created the need for more pay day loans to help people weather even every day expenses such as gas and food. It isn’t that people have failed to plan for these things, but the current state of the economy has more people than ever living from paycheck to paycheck with no money left—more and more month is left at the end of the money thus making it difficult for people to save for future needs.

Economists think we will begin to pull out of this recession by the first quarter of 2010, but the question is whether people’s finances will carry them until that time. With nine more months to go until 2010, we can only hope they are right and that people can use these short term loans to survive in the meantime.

You know how to save money at the grocery store. You know how to use your food skills to stretch your food dollar once you get the groceries home. These are vitally important skills in this economy; the recession comes knocking at everyone’s door. Cutting back on spending is the goal, and this doesn’t just mean leaving out those extra leisure purchases. This means shaving dollars off your everyday expenses. Payday loans may be around to help, but adapting habits to our environment is what we must do. That’s what really makes a difference.

Now let’s take a look at another everyday part of your budget that we need to keep an eye on during a recession: automobile expenses. Try as many of these helpful hints as you can and see how far ahead you come out at the end of the month!

• Combine errands to one trip and use the most efficient route – I know this is difficult for me, because I generally don’t plan beyond the day in front of me. However, combining trips saves you time and money. It’s also beneficial for the environment, as you aren’t starting your car as often (the time when combustion creates the largest quantity of atmospheric pollutants. Using an efficient route simply means knowing where you live, work and play. Don’t be afraid to try new things and access Web sites like Google Maps or your trusty paper road map. You will find a better way to get there if you look hard enough. Knowing what days and times traffic is heavy (and in what areas) can also help make your trips more efficient
• Walk – If you are lucky enough to live near a city center where all sorts of amenities are in close proximity, leave the car at home and start walking. It requires no gasoline and contributes to your physical fitness. Even if you live outside of downtown and have to travel a bit farther, why not make an adventure out of it and walk an extra mile or two? And why not CLICK HERE for more tips?

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