Americans Keep Racking Up Debt
People, people, people, what are you doing? Why so much credit card use? Didn’t you learn your lesson in 2009? Come on people. It is possible to live without credit. Do you know that credit card companies make just as much from fees and interest rates on what you spend? Read this article.
Americans Keep Racking Up Debt
By Althea Chang, Mainstreet @ The Street.com
Credit card balances for some consumers have risen by more than 30% in the last half of 2009, according to one study, despite reports that some card holders did chip away at their debt last year.
According to the U.S. Consumer Credit Score Climate Report from Credit Karma residents of Indiana, Michigan, Oklahoma, Pennsylvania and Tennessee saw an increase of 30% on average in their credit card debt in the latter half of 2009.
Philadelphia had the highest debt increase nationwide at about 40%. Overall, Americans with credit cards saw their debt increase about 18%, Credit Karma reports.
And as debt levels went up, credit scores went down, Credit Karma found. Since July, credit scores have dropped two points. For the full 2009 year, scores were down six points to an average of 671 in a market where an excellent credit score of 740 may not get you the best deal on a credit card, mortgage or car loan.
After several months of paying down credit card balances, many consumers were forced to turn to credit cards towards the end of the year,” noted Credit Karma CEO Ken Lin in a press release. “Credit Karma anticipates consumers to return to frugality in early 2010 and that credit scores will continue to remain stable until the economy picks back up.”
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Small Businesses Shake Off 2009 Blues
By Elizabeth Blackwell, The Street.com
CHICAGO (TheStreet) — Trade shows don’t usually generate a lot of excitement. But everyone from politicians to business reporters have been stopping by this week’s Detroit Auto Show. The event’s got a lot riding on it: Not only are car manufacturers unveiling models they hope will lure back wary shoppers, but the show as a whole is seen as a bellwether for the health of the American economy.
Sure, it’s easy to dismiss certain elements of the show as hype. Manufacturers tout concept cars that may not ever make it to market. Models that look great on a stage under rock-star lighting may not be as appealing when they’re parked on a dealer’s lot. In many ways, hope trumps reality.
But that’s exactly why this year’s show is so important. While I rarely hold up Detroit as a model of effective strategic planning, the optimism that’s on display there is something small businesses should emulate.
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U.S. Economy: Confidence Rises as Consumers See Brighter Future
I simply will not accept negative comments about the economy. There are no more excuses everyone! Do something to make your business better or get out of the way. There are simply no more excuses.
Luis Luarca
By Courtney Schlisserman and Bob Willis, BusinessWeek.com
Dec. 29 (Bloomberg) — Confidence among U.S. consumers improved in December for a second month as Americans grew less concerned about the immediate future, pointing to an economy that will keep expanding into 2010.
Attitudes about current conditions decreased to the lowest level in 26 years and wage expectations also fell, a reminder that the worst employment slump in the post-World War II era has shaken consumers. Gains in home and stock prices are helping households recover some of the record $17.5 trillion plunge in wealth, which may help sustain spending next year.
“We’re going to need a more definitive improvement in the labor market before confidence improves more than it has,” said Michael Moran, chief economist at Daiwa Securities America Inc. in New York, who forecast a rise to 53 for confidence. “The housing numbers are encouraging, but apparently they’re not having much influence on consumer attitudes. Consumers are focusing more on the job market than the housing market.”
Read more at businessweek.com
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Update: Are Things Really Getting Better?
by David Goldman
Friday, December 4, 2009
Last quarter, the economy grew by the largest amount since the summer of 2007, but there are signs that things are still getting worse. This is great article, a must read! Note that all things in life are relative. In other words, depending on who you are talking to, we are either going to hell or we are going to heaven as it relates to the future of the U.S. and global economy.
We all have to ask oursleves, where do we want to go? Rather, we must choose who we associate with and what we want to believe. An example here is that I personally surround myself with people who know what they are talking about, where “some” people choose to associate themselves with people who “think” they know what they are talking about. I know a business owner who “chosses” to listen to his attorney regarding OPERATING business decisions. Question: why would a person listen to someone who has ZERO knowledge of the topic? That’s like asking me to remove your appendix. I DON’T KNOW HOW!! Why would you ask me? Wouldn’t you be better off asking a surgeon?
Yes, we have lost jobs and businesses have closed due to the economy BUT NOW because of so much job loss there is great talent out there to hire AND there are customers needing service via the businesses that have gone out of business.
Where are you going to be at the end of 2010?
Make a choice!!!
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UPDATE: Beige Book: Economic Conditions Continue To Improve
By Meena Thiruvengadam
of Dow Jones Newswire
WASHINGTON (Dow Jones)–Economic conditions continued to improve across much of the country in late October and early November, but a weak labor market and deteriorating commercial real-estate sector remain dark spots in the U.S. recovery.
In its latest beige book report, the Federal Reserve said conditions across many of its 12 districts have “improved modestly.”
Consumer spending has risen, home sales picked up and upward wage pressures were subdued, the Fed said.
In Atlanta, merchants were reporting better-than-expected sales. But in Boston, retailers picked up on an increasing frugality among customers, joining others around the country cutting back on inventory levels even as the holiday shopping season approaches.
In Kansas City, the retail sector provided yet more fodder for the argument that inflationary pressures remain subdued. “Consumer prices largely decreased as a result of the use of heavy discounting to bolster sales,” that district reported.
The report, prepared by the Federal Reserve Bank of New York, examined economic conditions across the country from late October through Nov. 20. It is among the information the Fed’s interest rate policy-setting committee will consider at its meeting later this month.
The report noted that in the post cash-for-clunkers era, used vehicle sales are outpacing sales of new vehicles.
The Fed’s researchers also observed “some pickup in home sales, though prices were generally said to be flat or declining modestly.” The report confirmed that in most of the U.S. the lower-priced segment of the housing market is outperforming the high end. In Atlanta, for example, new residential construction activity appeared concentrated in lower price points, it said.
The relatively optimistic tone of the report shifted when discussing the labor market and commercial real estate.
On commercial real estate, the report said that “market conditions were reported to have weakened in virtually all districts, with rising vacancy rates, downward pressure on rents, and little, if any, new development.”
Expectations for the sector in 2010 were low with Boston characterizing its own outlook for commercial real estate as “bleak” and Kansas City calling the sector “distressed.”
In many cases, the commercial real-estate sector is deteriorating, the Fed said. In Cleveland, for example, commercial and industrial construction activity was described as sluggish with financing remaining a major hurdle for builders.
On the labor market, the Fed observed scattered signs of improvement but said “further layoffs, sluggish hiring and high levels of unemployment” are still plaguing most of its districts.
The outlook for seasonal employees also wasn’t good, with the Fed’s contacts reporting lighter-than-normal hiring in advance of the holiday season. Dallas retailers said they have “increased hours of current employees rather than hiring new workers.”
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629; meena.thiruvengadam@dowjones.com
(Jeff Bater contributed to this article.)
source: WSJ Online
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Fed survey finds recovery gaining momentum
Fed survey: Recovery gaining traction as shoppers spend more, factories bump up production
By Jeannine Aversa, AP Economics Writer
On 3:22 pm EST, Wednesday December 2, 2009
WASHINGTON (AP) — The economic recovery gained traction in late fall as shoppers spent a bit more and factories bumped up production. That assessment Wednesday by the Federal Reserve marked its most upbeat view since the economy tumbled into recession two years ago.
The Fed’s new snapshot of business barometers nationwide found that conditions have generally improved since the last report in late October.
Eight of the Fed’s 12 regions surveyed reported some pickup in activity or improved conditions, the Fed said. Those regions were: Boston, New York, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.
The four other regions — Philadelphia, Cleveland, Richmond and Atlanta — described conditions as little changed or mixed.
The new report adds to evidence that the economy is rebounding after the worst recession since the 1930s.
The main challenge for Fed Chairman Ben Bernanke, who will be on Capitol Hill on Thursday seeking confirmation for a second term, is to sustain the fledgling rebound, especially after the benefits of government support fade next year.
Read more at Yahoo/Finance.com
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Obama: US economy has ‘core strengths’
Obama says US economy has ‘core strengths’ that put nation in good shape for long term
On 4:32 pm EST, Monday November 23, 2009
WASHINGTON (AP) — President Barack Obama said Monday the nation’s economy is in good shape for the long term thanks to “core strengths” such as its universities, its innovation and a dynamic workforce.
But he also noted again how 2009 has been a sobering year for millions of newly unemployed people.
“We cannot sit back and be satisfied given the extraordinarily high unemployment levels that we’ve seen,” Obama said in wrapping up a pre-Thanksgiving session with his Cabinet as other senior aides packed the meeting room. “We have only taken the first step in curing our economy.”
The unemployment rate stands at a 26-year high of 10.2 percent, overshadowing more upbeat indicators such as a return in growth of the overall economy.
Obama told reporters that his Cabinet discussion included matters of national security and the upcoming budget, but the emphasis was on job creation. He recapped both his administration’s efforts to help stabilize the financial sector and the web of challenges that have slowed an overall recovery.
“There are core strengths to the American economy that will put us in good stead over the long term,” Obama said. He said the key is bridging that gap toward a more prosperous time and promised the gathered reporters he won’t let up “until businesses are investing again and businesses are hiring again.”
Read more at Yahoo Finance.com
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Geithner: ‘The credit crunch is not over’
Small businesses took center stage as Washington power players convened to tackle the growing crisis in lending.
By Catherine Clifford, CNNMoney.com staff reporter
WASHINGTON (CNNMoney.com) — One day after Goldman Sachs’ CEO apologized for his bank’s role in the financial meltdown, Treasury Secretary Tim Geithner called on the nation’s financiers to step up and do more to fix the damage they helped cause.
“This credit crunch is not over,” Geithner at a small business financing forum in Washington hosted by the Treasury. “It may feel dramatically better for large companies, but it is not over for small businesses across the country.”
The nation’s banking system was stabilized with taxpayer dollars, and Geithner said he holds the biggest banks accountable for passing the torch from Wall Street to Main Street.
“Banks bear some responsibility for the extent of the damage caused by the crisis,” he said. “And they carry a substantial obligation to help our communities get back on their feet.”
Read more at CNN/Money.com
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Who is running Craigslist?
Ok, I have had enough!
For years now I have maintained this blog site to share insights and news bites about the economy and general business topics that might be useful. After some procrastination and a bit of free time, I have decided to use this site for what it was really meant for…ranting about something.
I’m still going to provide legitimate, valuable news info regarding the economy, but I am also going to have fun with this blog site by pointing out the painfully obvious mistakes business managers make. It’s like I am going to use this site to share what “grinds my gears” like Peter did in that episode of “Family Guy” where he had a spot on the local evening news talking about things that grind his gears.
For example; this past October I had a terrible expereince while staying at a La Quinta hotel in Houston, Texas that got me so frustrated and pissed off that I vowed to never stay at a La Quinta again. I thought of blogging about it but was just too busy to write, and a little too pissed of to stay focused enough to write. I will actually get to that blog soon but today was the final straw, which again prompted me to use this blog site to heckle, embarass, and educate business owners in how to “not” operate your business.
So last week and today I am trying to post an ad to hire over 100+ Americans for legitimate employment via Craigslist but I notice that my ads continued to be deleted. According to CL, I find out that they have a policy that does not allow them to post ads for employment that are “work from home” ads.
ARE YOU KIDDING ME???
You can STILL actually hire a call girl from Craigslist or get a random BJ via Craigslist postings BUT I CANNOT PUT OVER 100+ AMERICANS TO WORK??
First their response was:
Apologies for the trouble, but we are not able to accept job opportunities
that require any of the following:
* fees/costs of any kind (upfront or periodic)
* club membership
* recruitment of other members, sub-distributors, or sub-agents
In addition, craigslist cannot accept:
* franchise offers
* multi-level marketing opportunities
* distributorship arrangements
My ad is NIETHER of these.
Next I get this response:
Sorry, we do not accept appointment setting positions from home.
Thanks,
craigslist customer service
Ok, but I can post an ad if I am a pimp and I need to put my girls to work?
If you go to Craigslist into the “casual encounters” section, you can actually hire a call girl. Still. Regardless of what came from that murder case in New York. Call girls and their pimps have found a way around Craigslist’s filters. BUT I cannot place an ad for ligitimate employment.
What gives Craigslist? Why are your policies so random and lopsided?
I’ll post the La Quinta story later this week. That one is a doozy!
It’s actually entertaining for me to poke fun at ignorant business managers.
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Bernanke: Weak recovery ahead
Fed chairman said high unemployment and tight credit will limit economic growth, but he dismissed worries about another recession and dollar weakness.
By Chris Isidore, CNNMoney.com senior writer
NEW YORK (CNNMoney.com) — Federal Reserve Chairman Ben Bernanke said the recovery in the U.S. economy will be modest, with higher than desired levels of unemployment in the foreseeable future.
Speaking to the Economic Club of New York Monday, Bernanke said in his prepared remarks that financial conditions are significantly better than when he spoke to the club a year ago at the height of the crisis in global financial markets.
But Bernanke cautioned that “some important headwinds — in particular, constrained bank lending and a weak job market — likely will prevent the expansion from being as robust as we would hope.”
He didn’t offer much immediate hope of a better labor market in the United States either.
“Jobs are likely to remain scarce for some time, keeping households cautious about spending,” he cautioned.
Read more at CNN/Money.com
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