There are a lot of good things about today's $25 billion settlement between the five largest mortgage servicers, the Dept. of Justice and the attorneys general of 49 states. But in spite of the huge price tag on the deal — which could grow even larger if other lenders sign on — it's only the beginning of cleaning up the aftermath of housing market collapse. More »
Kodak, the company whose name was once synonymous with photography, announced today that it will phase out its digital cameras, pocket video cameras and digital picture frames during the first half of this year, as it fights to crawl out from under Chapter 11 bankruptcy protection. More »
As you might have noticed, a number of companies have shut their doors over the last few years. Making matters worse for the former employees of some of those businesses is that they still have to file their tax returns — but no one wants to give them a W-2. More »
More than a year after several of the nation's largest mortgage lenders temporarily suspended foreclosures after it was revealed that they had been using untrained, unqualified "robosigners" to process foreclosure documents, the U.S. Justice Dept. and the attorneys general of 49 states have announced a $25 billion settlement that will result in mortgage reductions to some homeowners. More »
It's too bad our pal Kenneth, the $16 house guy, doesn't live in Detroit, or he might've been able to keep on squatting: Tax officials in Wayne County are going to offer those living in thousands of foreclosed homes the opportunity to stay in those homes for as little as $500. More »
It's been nearly a half decade since the housing market imploded like an old stadium packed with explosives and the ground is still rumbling from the impact. Realizing it's better to recover some money now rather than trying to get all their cash back eventually, more banks are making it easier for homeowners to unload their houses for less than what is owed on the mortgage. More »
Last night was the deadline for the attorneys general of each state to sign onto a massive settlement with the nation's five largest mortgage lenders, and more than 40 of the states opted to join in the pot-sharing. More »
Being in college and having an empty wallet tend to go hand-in-hand. A full course load can make it difficult for students to find steady work, and in many college towns the work that's available isn't going to pay for very much. But while my fellow students were undergoing (legal) drug trials and donating whatever bodily fluid they could get a few cents for, some in the current generation of cash-strapped collegians are turning to food stamps. More »
In an effort to put living, paying bodies into homes left vacant following foreclosure, the Federal Housing Finance Agency has announced the beginnings of a program to sell off pools of foreclosed properties to investors who would then rent them out. More »
Anyone who has applied for a job at a large company — especially one that doesn't accept actual resumes but instead requires you to fill out a series of online forms — probably knows that their CV is being scanned, and maybe thrown in the trash, by some automated system meant to weed out those who obviously don't fit the criteria. But there's a chance you do fit the bill; you're just not using the write words to describe your skills and experience. More »
Home prices continued to drop in November, according to the latest report that covers 20 cities across the country in its index. Out of those 20, 19 saw a decline, resulting in a 1.3% dip from the previous month in the index score. More »
Although there are signs of hope for the economy as American incomes were up by the most they have been in nine months, the fact that we're also keeping our spending exactly the same isn't so great. More »
With about a half-decade of a blah economy and weak employment, Americans are growing more amenable to taking temporary employment, changing their viewpoint from the glass-half-empty opinion of "it's a job without permanence" to "it's a job that may lead to something permanent one day." More »
Since Groupon launched, we've written a handful of stories about businesses — like the bakery that claimed $19,500 in losses and the cafe owner who called it the "single worst decision" she'd ever made — that said they took on huge amounts of red ink when they were overwhelmed by bargain-hunting shoppers who only wanted the discount. Well, here's a story that's slightly different, in that the shop's regular customers have come to the rescue to save the sinking business. More »
Over the course of the last half-decade, we've written plenty of stories about homeowners who, facing foreclosure, just walked away from their doomed homes. But a man in Minnesota decided to go one step beyond, choosing to leave his 11-year-old son behind in the house he could no longer afford. More »
For everyone who so over these economic doldrums, the latest Labor Department jobs data for December 2011 may prove to be a bit of a belated holiday gift. Let's just hope that gift doesn't end up being returned in a couple months. More »
Last year, banks and financial regulators on Capitol Hill went head-to-head over swipes fees, the amount of money banks charge businesses each time they accept a debit card purchase. While swipe fees did end up being reduced by only a fraction of what had initially been proposed, banks are still whining about the pennies they are no longer bringing in. Thus, shoppers are receiving mixed messages from retailers and financial institutions about whether to use their debit card, credit card, or cash. More »
Nearly a half-decade after the U.S. housing market collapsed like something that collapses really badly, the country's five biggest mortgage providers — Bank of America, Chase, Wells Fargo, Citi and Ally — are oh-so-close to reaching a settlement with the states that could include overhauls to how they operate when it comes to the whole lending/servicing/foreclosing process. More »
As predicted earlier this month, struggling photography pioneer Eastman Kodak has filed for Chapter 11 bankruptcy protection while it attempts to raise cash by selling off some of its more than 1,000 patents. More »
Yesterday, we told you about personal finance personality Suze Orman's decision to get behind a pre-paid debit card that she hoped would be of help to consumers who either couldn't get a line of credit or wanted to avoid using credit cards. But now that people have had a chance to look at the specifics on Suze's card, the reaction from some is a bit of a shrug. More »
Ever since it stupidly acquired Countrywide Financial — and all of that company's toxic home loans — the Bank of America name has become synonymous with rampant, and occasionally screwed-up, foreclosures. Now the tallest building in Atlanta is facing foreclosure — and it just happens to bear the BofA name. More »
Usually, one of the main factors a lender uses to determine whether or not to let an applicant borrow money is the applicant's history of paying back (or failing to pay back) other loans. But with so many Americans having skipped mortgage payments in recent years, auto lenders are apparently no long slamming the door on potential borrowers just because they weren't able to keep current on their house payments. More »
Only a day after being appointed — in the face of stalwart Senate Republicans — as head of the new Consumer Financial Protection Bureau, former Ohio Attorney General Richard Cordray took to YouTube to share his vision of the CFPB's mission. More »
The new year isn't getting off to a good start for the photo folks at Eastman Kodak Co., which is reportedly preparing to file for Chapter 11 bankruptcy protection if it can't unload a pile of its patents on buyers in the next few weeks. More »
The value of their homes is a major point of pride for many owners, who use the figure to prop up their net worth and justify the money they've poured into their dwellings. When the price declines, as it has been doing for most homeowners for years, they tend to overlook the positive side of the drop — one that affects them more immediately. More »
People with credit scores that prevent anyone but their mom from lending them money are suddenly receiving offers that allow them to have a credit card — on the condition that they pay back part of an old debt that they are no longer legally obligated to pay. More »
Some of you may remember the story from October of the New Jersey woman whose brother squandered more than $200,000 in loans tied to the home they inherited on numerous internet scams, and who was left facing foreclosure when the same brother passed away. After the media got involved, the bank said that after years of denying her a modification, it finally wanted to grant her one — but you wouldn't be able to tell by their actions in the weeks since. More »
When you're driving around in a vehicle that needs repairs, there's a possibility that you're putting yourself and others at risk. But with many people still strapped for cash, car troubles often take a back seat to pinching pennies, according to the results of a new survey by our polling pals at Consumer Reports. More »
Being your own boss means giving yourself however big a raise you darn well please. A survey of the honchos at each Standard & Poor 500 company found that CEOs and their boards deemed their services an average of 36.5 percent more valuable than the year before, judging from the raises they received. More »
Retailers that rejoiced over big Black Friday numbers that kicked off a strong holiday sales season now have reason for pessimism. More buying means there's also more buyer's remorse, with a National Retail Federation survey finding that retailers will refund 9.9 cents for every dollar they take in, due to returns. The figure is up 0.1 cents from last year, and nearly three cents higher than in a better economic climate. More »
According to the ancient tradition, the Monday immediately following Thanksgiving has been known as Cyber Monday, that day when we all pretend to be working but are really sifting through countless websites looking for bargains. But that long-held tradition is now being repeated every first day of the work week this holiday season. More »
A plumber in Texas has a very full appointment book these days. That's because he doesn't invoice his customers for the sometimes costly work he performs. Instead, he only asks them to pay what they can afford. More »
After a year marked by mass public outcries in most parts of the world, and tilting at the windmills of everything from totalitarian governments to unchecked financial institutions, Time magazine has handed its annual Person of the Year cover to "The Protestor." More »
Many Americans are carrying more than $10,000 in revolving credit card debt, some with an APR of over 20%. But while the idea of putting a more reasonable ceiling on these rates might seem like a way to help get these folks out of debt and back in the black, some say it would likely have no positive effect on the economy at large. More »
When the calendar flips over to 2012, minimum wage workers in San Francisco will be making a bit more, as the city becomes the first local in the U.S. with a bottom-line pay rate of more than $10/hour. More »
Smart shoppers look everywhere they can think of for a good deal. But does that include heading to the local pawn shop to see if they can scrounge up a good bargain when looking for holiday gifts? More »
American households were collectively $2.2 trillion poorer at the end of September than they were at the end of June, marking the steepest-single quarter drop since 2008. Falling stock wealth was mainly to blame for the 4.1 percent drop to $57.4 trillion. Stagnant home prices didn't much help things either. More »
In a number marking a nine-month low, there are less Americans with new claims for state unemployment benefits. People smarter than we are who know about these things think this is a good indication for the job market overall. More »
In case you've been asleep for the last few months, there are more than a handful of people out there who aren't too happy about the fact that executives at bailed-out banks are reaping huge salaries while none of them have been called to account for the actions that required them to be bailed out in the first place. But thank heavens that one ultra-wealthy CEO is willing to stand up for his fellow bullied bankers. More »
Getting a mortgage is difficult enough. Having that mortgage modified because your house has dropped in value can be a Minotaur's maze full of unscrupulous types looking to cash in on your uncertainty about the often complicated process. More »
When the economy jumped head-first into a drained pool in 2008, many American shoppers turned away from using their credit cards to make purchases, instead opting to use debit cards and cash. But during the last six months, the numbers show that we've returned to pressing the "credit" button at the checkout line. More »
Now that recession-weary consumers have been shedding debt, banks are doing their best to convince you to get that spending back up. Somewhat tricky moves from various credit card companies could result in a high balance if you're not careful. More »
As many parents know, plenty of toys is still never enough — there always seems to be some must-have gadget out there your kids will clamor for. A few readers have called our attention to a new toy-renting website that could help parents with their kids' neophyte tendencies. More »
Kids who tagged along with their parents on grocery store trips in the early 1990s just to spend the duration in the magazine aisle paging through GamePro magazine will have to kiss another piece of their childhoods goodbye. After abandoning the monthly format for a quarterly model this year, the magazine has ceased production entirely. Also, the website will shut down by Dec. 6. More »
You work hard to earn vacation days, but when the time comes to enjoy them, a new study says American workers aren't using up all the time off they've earned for the year. More »
If you put your house on the market, there's a great chance it will stay there for months, leaving you twisting in the wind as you decide what your next move will be. No matter how often you badger your real estate agent, the depressed housing market means buyers can be choosy, leaving otherwise attractive deals hang in the balance. More »
When you're applying for a job, you can make the hiring manager's job easier by making a mistake that immediately eliminates you from contention. Oblivious, lazy behaviors can knock you out before you even get into the ring. More »
As the economy sank into the muck over the last few years, a lot of homeowners have missed or been late with property tax payments. And in some cases, the property will be sold in order to recoup those taxes. But there are unsavory types out there looking to take advantage of homeowners' uncertainty about their tax situation. More »
It used to be OK to mock adults in their 20s and 30s who went back to live with their parents after that whole living-on-their-own thing didn't work out so well. But because the brutal job market has no doubt made the situation more common, these days the act of boomeranging back home is a dead-serious survival maneuver rather than a sign of arrested development. More »
Once again, the folks at Time Magazine are putting together their annual "Person of the Year" issue, in which the editors name the one individual or group that most embodies the previous 12 months. It probably comes as little surprise then that, according to the current number's of Time's online poll, the "99%" — the name given both to the movement behind the seemingly countless Occupy protests and to the general mass of people who feel that big banks have been given a pass while the rest of the country sputters — is in the lead. More »
An unforgiving economy combined with plundered pensions and worries about the sustainability of Social Security have apparently sucked some air out of the dream of retiring by age 65. According to a survey, a quarter of Americans believe they'll need to keep clocking in until 80 in order to be able to save up enough to retire. More »
A judge in Georgia is quickly becoming an internet folk hero after he publicly slammed U.S. Bank for taking billions in government bailout money and all the while refusing mortgage modifications for homeowners in need of help. More »
If you're looking for an upside to the last few years of economic doldrums, here's some news for you. The results of a new survey demonstrate that Americans have become more focused, efficient and less impulsive when it comes time to do their shopping. More »
The owner of the Old School Barber Shop in Canton, OH, knows that times are tough. In fact, there's a sign out front of the building that says as much. That sign also lets customers know that the $12 price for a haircut is negotiable. More »
As the U.S. economy continues to try to climb out of the sinkhole left by the 2008 bank meltdown, looming disasters in Europe and Japan could end up plunging us back into a recession in the coming months, warns a new report from the San Francisco Federal Reserve Bank. More »
After the last department store in town went bankrupt in 2002, the townsfolk of Saranac Lake, NY, faced the daunting prospect of having to drive 50 miles away just to purchase underwear. Rather than give up or give into complaining, they pulled themselves up by their mud boots and decided to build their own store, and it just opened. More »
A growing number of employers are running credit checks on potential hires before making a job offer. Unfortunately, there are a large number of people out there whose credit reports are still marred by the recent and ongoing economic troubles. So does it make sense to consider an applicant's credit history? More »
If you're planning on ponying up for this year's Thanksgiving dinner, be prepared to spend some more money, as a new report finds the average cost of a turkey-fied feast has jumped more than 13% since last year. More »
Some of the crappiest mortgages ever made were issued in 2006, and right now those 5-year introductory teaser periods are expiring. That's leading to a 300% increase in monthly payments for already strapped borrowers, and it's what's driving the first increase in delinquent mortgages since 2009, a banking expert tells Credit.com. More »
Overwhelmed homeowners looking for a life raft splashed around to no avail in the third quarter, but they did receive more company. According to Zillow, the amount of underwater homeowners — those who owed more than their home was worth — rose to 28.6 percent from 26.8 percent in the second quarter. More »
The economic times are apparently going relatively easy on old folks while sticking it to the whippersnappers. Those at retirement age and beyond were better off in 2009 than they were in 1984, while their younger counterparts faced more difficult struggles. More »
Belt-tightening is happening everywhere, even on Wall Street, where excess has always seemed to have reigned supreme. A compensation survey says bonuses for financial workers in the district are expected to fall between 20 and 30 percent this year. While those who don't receive any work bonuses won't shed tears for Wall Street types, at least this is a sign that the financial world is connected to reality. More »
Saturday was the fifth of November, and many remembered to take a stand and shut down their big retail bank accounts, transferring their cash to a new credit union account. Here's a video out of Occupy Portland covering what happened on Bank Transfer Day. Interviewees talk about why they're switching to a credit union, and how this is just the beginning. More »
If you lust for the price breaks of Black Friday deals but lack the will to get up in the early hours and brave the wild crowds, you might consider hiring a stunt shopper — a bounty hunter of sorts willing to head out there and do whatever it takes to snag your gifts for you. More »
In the month following the announcement of Bank of America's (subsequently scrapped) plan to charge a $5 fee to some of its debit card users, at least 650,000 Americans consumers have opened accounts at a credit union. According to some reports, that's 50,000 more than the number of new accounts opened in all of 2010. More »
Tomorrow is Bank Transfer Day. By this date, people all across America are shutting down their accounts at large, costly, name-brand banks and transferring their funds to new bank accounts at their local credit union or community bank. Here is an excellent video made in Portland that follows along with several different people as they close their bank accounts and give their reasons for doing so. One person wants to save money, another disagrees with the bank's foreclosure practices, a third is mad about the bailouts, and the last is a union withdrawing its funds to show solidarity with holding Wall Street accountable. More »
A record number of Americans classify as the poorest poor, according to a new report. Right now, 1 in 15 Americans live at least 50% below the official poverty level of $22,314 per annum for a family of four. That's making do with about $11,000 a year split between four people. More »
Low-income residents who rely on federal assistance to keep the heat on may be in for a rough winter. Because the U.S. Department of Health and Human Services's allotment for heating assistance has plunged to $1.7 billion this year from $4.5 billion last year, thousands of homes may not be able to keep the heat on. More »
Any number of stores have policies against accepting cash in denominations higher than $20 or $50 bills, but what about loose change? A woman in Portland (the one on the left side of the country) says her local grocery stores refused to let her use quarters to pay for $32 in groceries. More »
More than 100 years after opening underneath a Boston department store, it's the end of the road for discount clothing store Filene's Basement, which filed for bankruptcy this morning along with parent company Syms. More »
A YouTube video has racked up over 300,000 hits promoting the idea that you can really mess with the banks by sending back activist messages in those pre-paid response envelopes that come with the credit card junk mail. The theory is that if enough people do it, it will force people in the bank mailrooms to have a meeting about all these Occupy Wall Street slogans showing up in their mail, and making banks engage in a dialogue with their customers, revolutionizing how they operate to a way that's more responsive to the common good. This is a terrible idea and a waste of time. More »
Helicopter drones looking for work outside the military might look well to apply at their local real estate office for a job. Turns out they're not just good for conducting unmanned aerial strikes against insurgents, drones can also be used to sell mansions, via in-depth tour videos made with cameras mounted to their frames. More »
Millions of Americans have lost their homes in the last few years and — as any reader of Consumerist knows — the banks who foreclosed on those properties have also made more than their fair share of errors. Thus, starting today, 14 of the country's largest mortgage servicers are contacting millions of foreclosed-upon former homeowners to offer them the opportunity to have their cases independently reviewed. More »
Given all the anger currently being directed toward a number of the bigger banks, it might be tempting to stroll into your local branch and walk out with all your money in a sack with a dollar sign on it. But if you want to switch your funds over to a new institution without running the risk of screwing up any automated payments of direct deposits, it will take a few steps. More »
The Los Angeles Times has an excellent investigation into the national "Buy Here Pay Here" auto dealership phenomenon. These used car sellers purposefully target bad credit borrowers and offer them what no one else will: the chance to buy a car on credit. All they have to do is agree to 20-30% interest rates, a price well above the car's Blue Book Value, and aggressive repo practices if they fail to pay up. But it's not a big deal if they don't. Borrower failure is baked into the business plan. More »
What do the employees at a foreclosure mill - a law firm that aggressively pursues massive numbers of foreclosures, even against homeowners in the middle of working out a mortgage mod - dress up for Halloween? Well at one joint, last year they dressed up as homeless former homeowners and as the corpse of a lawyer who filed a class action lawsuit against them, according to photos sent to the New York Times. More »
Even though they haven't been making any additional money for the past three months, consumer spending ticked up 0.6% in September. Are people spending more because they feel that the low interest rates they get from the bank make it less valuable to save? More »
The Internet Celebrities headed down to Occupy Wall Street to find out more about what was in the protesters' heads and how they operate. Besides the colorful characters we've seen on the news, they found dedicated press relations volunteers, a chalk board listing the times for various working groups and direct actions everyone could participate in, and a free library. More »
If you need a catchup-slash-refresher on why those folks down at Occupy Wall Street are so mad at the street they're occupying, ProPublica has put together a nice juicy primer. More »
Buoyed by brisker consumer and business spending, The American economy grew at an annualized rate of 2.5% in the third quarter, according to a report released this morning by the U.S. Department of Commerce, More »
European banks this morning agreed to take a 50% loss on Greek debt, a critical step towards ending the financial crisis gripping the euro zone. More »
Some enterprising drug dealers are helping copper thieves cut out the middleman. They're accepting copper pipe as legal tender in exchange for crack cocaine. More »
College continues to get irrationally expensive, with tuition at public schools soaring 8.3 percent this year, while private nonprofit schools have upped their costs an average of 4.5 percent. According to College Board findings, the average college grad is saddled with $20,000 in loans. More »
The federal government announced on Monday an update to a program for homeowners that would let borrowers who were underwater - owing more on the mortgage than the house is worth - to refinance their loans at the new historically low interest rates of almost 4%. More »
When a business entity the size of the NBA grinds to a halt, it's the infrastructure workers who pay the greatest price. One estimate says that as many as 400 workers in the league have lost their jobs since owners started the lockout. More »
With mortgage interest rates continuing to hover near record lows, the Federal Housing Finance Agency has announced big changes to the Home Affordable Refinance Program with the intention of making it easier for homeowners to save money by refinancing their loans at these rock-bottom rates. More »
We've written these words too many times to count, but they obviously merit repeating once more: "Never co-sign a loan unless you are prepared and willing to pay back the entire thing — plus interest and penalties — if the other person defaults." It's a lesson a New Jersey woman has spent the last four years learning, and who now faces foreclosure because her dead brother was taken by scammers. More »
One of the biggest problems with the huge number of foreclosures in the years since the housing boom went ka-boom is that banks can be left holding houses for which they can't find a buyer. This can sometimes lead to entire neighborhoods that look like ghost towns. But the mayor of Atlanta says the city will soon be announcing a deal that will not only get some of those homes sold, but will also bring firefighters and police officers back into the city limits. More »
What happens to old Borders stores now that the book chain is bankrupt and liquidated? In Kennesaw, Georgia, one old Borders shop has been brought back from the dead as a temporary Halloween supply warehouse. It makes reader DW sad. More »
The Labor Department provided a sign that the job market may be creeping out of its dreadful depths. For the fourth consecutive week, the rolling four-week average of people applying for unemployment benefits declined. The 403,000 applicants in the span ending last week were down from 409,250 in the frame ending the week before. More »
The restaurant business is incredibly risky, especially in a city like New York with its fickle diners and over-the-top overhead costs. But that's not stopping a restaurant in Brooklyn from going ahead with plans to try out the whole "pay what you want" model for a month. More »
For the first time since the advent of the financial meltdown, and for only the second time since 1999 when it became a publicly traded company, Goldman Sachs has — Gasp! Horror! Shock! — lost some money. More »
Several states and major banks are said to be close to sealing a deal that would protect banks from civil suits over sketchy mortgage practices in exchange for $25 billion that would help underwater homeowners refinance their loans. The deal could help the weak housing market. More »
November 5 may be Bank Transfer Day, but we know a lot of you have already been jumping from financial institution to financial institution since the Wachovias, WaMus and other banks went bust a few years ago. More »
After getting all hot and heavy leading up to the recession, then turning completely cold shoulder, credit card companies are once again starting to selectively flirt with subprime borrowers. More »
If a thrift store opened up down the street from you, what would you do? Would you say, "How convenient!" and stop by daily? Or would you lament, "There goes the neighborhood," dreading all of the poor people sure to traipse by, looking all poor and stuff and committing crimes? That's what the residents of an upper-middle-class neighborhood in Saskatoon, Saskatchewan think is going to happen once a Value Village store opens there. But only when they get to share their thoughts anonymously. More »
If you can't pay your utility bill, chances are the power company will just turn off your electricity until you can. But when it came time for the city of Highland Park, MI, to settle its $4 million debt to DTE Energy, the repo man came calling. More »
Deciding to turn the tables, one Atlanta photographer has posted an ad to the talent gigs section of Craigslist looking for people to do their jobs for him for free. "I am a photographer and since people are always looking for free shoots I assume that they must also do their job, or provide their services, for free," the post reads. "Just think, you will gain more experience, and I will put the word out for you and let everyone know what wonderful work you do." Here's the full ad. More »
When you're buying a home, you fork over some cash to pay for title insurance to cover your butt in case there are any existing liens on the property. But what do you do when your home ends up in foreclosure because the company that's supposed to be providing that insurance screws up royally and then tells you not to file a claim? More »
With unemployment rates high and the economy still struggling, many Americans have moved in with relatives, according to a new Pew Research Center analysis of Census Bureau data. The result: the largest increase in the number of Americans living in multi-generational households in modern history. More »
As we reported last week, the financial outlook at ice cream and burger chain Friendly's is bleak. Earlier today, the company confirmed rumors it would be filing for Chapter 11 bankruptcy protection and announced it has closed 63 shops around the country. More »
To be able to terrorize the roads as a drunk driver, you need to be able to afford both a vehicle and booze, and those things aren't so easy to come by when jobs are so scarce. The Centers for Disease Control and Prevention says a survey finds that impaired driving is down 30 percent since the boom times of 2006. More »
With a large number of Americans still feeling the sting of the economic doldrums, the U.S. is banking on a hope that tourists from China will come to this country and spend money on products that were probably made in China. More »
Over 700 Occupy Wall Street protesters were arrested when they marched across the Brooklyn Bridge this weekend, blocking traffic and shooting the movement into the national consciousness. More »
Since the housing market went smash-bang-crash into a deep ravine a few years back, we've written numerous stories of homeowners with mortgages they couldn't pay — and some who could pay and chose not to — who opted to walk away and let the bank sell the house at a foreclosure auction. But if these people thought that they could abandon the home and have only a damaged credit rating to show for it, there's a chance they could be very, very wrong. More »
This might turn out to be a problem: A new report indicates Americans earned less money in August than they did in July, but that spending still went up. It's the first time income has taken a dip in two years. More »
Investors have been snatching up houses in Philly and then applying a "rent 'em n' forget 'em" policy. Once-picturesque blocks where neighbors competed to have the nicest flowerbed have degenerated into ones where they seem to be fighting to see who can have the highest unmowed lawn. More »
Friendly's, the ice cream and burger chain that has more recently been in the news for pushing the limits of cheese tolerance by slapping a burger between two grilled cheese sandwiches, is reportedly considering filing for Chapter 11 bankruptcy protection and possible sale. More »
Going into its 14th day, the Occupy Wall Street protest is not only not fading out, it's about to get a big injection of support, and bodies. The established New York City labor and community groups who normally organize local marches, rallies and sit-ins, have announced they plan to join up next week. More »
Japan's March tsunami and earthquake sent automobile production and sales into a tailspin that the industry has only recently started to recover from. Analysts project U.S. car sales increased 9 percent this month from September 2010, lifting car sales from their lowest per capita levels since World War II. More »
The way we currently measure poverty is, shall we say, based on a paucity of data. New York is deploying a new system of measuring poverty that aims to give a greater depth and richness to the poverty picture. More »
Good news for anyone looking for a seasonal job — Best Buy, Macy's and Toys R' Us have all announced they'll be hiring a few thousand extra workers for the upcoming holiday season. More »
Oblivious to the possibility that the last thing people who lost their jobs need are cardboard reminders of their misfortune, Hallmark has launched a line of greeting cards geared to the downsized. Among the witticisms you can sign beneath and hand over solemnly: "Don't think of it as losing your job. Think of it as a time out between stupid bosses." More »
With the economy and job market still stuck in "blargh," more people are making potentially dangerous decisions about their health care, all in the name of stretching their dollar just a little bit farther. More »
Though you won't find any part of the country where residents don't gripe and grouse about ATM fees, the results of a new survey show exactly which cities have the most (and least) to complain about. More »
Back in January 2010, seeking o learn more about the mortgage-backed securities that helped destroy the global economy, the staff of National Public Radio's Planet Money podcast pooled their money and bought part of a mortgage-backed bond. "Toxie" lasted only a few more months, earning $449 for her owners before so few mortgage payments were coming in that she "died." Or at least stopped earning money. More »
New data on U.S. housing costs shows that more than half of the nation's renters are writing rent checks that are at least 30% of their household income, and one in four renters are paying out half their income for shelter. More »
The Fed is widely expected to tomorrow announce the latest round of monetary policy tweaking designed to loosen up markets. It has the cute name of "Operation Twist." Here's how it works. More »
A 77-year old blind Texas woman says she thought she was signing a document to get relief from taxes, but instead she was tricked into signing over the deed to her house. More »
Prospective home buyers seemingly can't go wrong by waiting. As nearly each month passes and they build up their down payments, home prices continue to dip and mortgage rates set new record lows. According to Freddie Mac, 30-year fixed-rate home loans now average 4.09 percent, while 15-year fixed mortgages slid to 3.3 percent. More »
Last year, several of the country's largest mortgage servicers — Bank of America, GMAC/Ally, JPMorgan Chase, among others — were forced to hit the pause button on foreclosure procedures after it was revealed that many foreclosure documents were being rubber stamped by untrained, ill-informed "robo-signers." This delay caused a bottleneck of foreclosure-worthy properties waiting to be reviewed. But now it looks like those homes are starting to trickle out into what could be a flood in early 2012. More »
Just because Freddie Mac has a glut of properties on its hands, buyers can't expect Costco prices. Most of the buyers approaching Freddie have been looking to buy at 40-60% off of market price, like the final weeks of a Borders liquidation sale. Instead, Freddie is sending them back this letter which says sorry, we're only taking less than 10% off. More »
Unemployment and an erosion in employer-provided benefits are some of the major reasons the amount of uninsured American rose to 49.9 million last year. That's 900,000 more than in 2009, according to Census data. Gone are the days that it was a given that your workplace handed you an insurance plan. In 2000, 64.1 percent of the population were covered by employer-provided insurance, but those ranks slipped to 55.3 percent last year. More »
The Office of Management and Budget released its latest census data report today and it doesn't paint a terribly rosy picture of the current economic situation. More »
In a sad sign of the times, reader "Strawless" says that his local AMC Theater isn't giving out spoon straws with ICEEs anymore. They say they're too expensive and you'll have to make do with a regular straw. The theater is still happy to sell you a popcorn, coke and ICEE for $20, but that's no longer enough to subsidize shipments of the specialized straws. More »
They only had $37,000 left to go on their mortgage they'd been paying off for 25 years, but now a California family's house is going into foreclosure. More »
According to the latest numbers from the Dept. of Education, there was a sizable increase in the percentage of college students who defaulted on their student loans in 2009. More »
When you want a good idea of how the economy is shambling along, checking out what consumers are doing provides a lot of insight. What we're spending (or not spending) money on and other lifestyle trends speak as much as stocks and budget numbers. More »
Last night, President Obama addressed Congress and urged them to pass the American Jobs Act immediately. Here are some of the highlighted proposals: More »
Claims for unemployment benefits rose by a surprise 2,000 to 414,000 last week, sending stocks downward. Economists had predicted a drop in claims to 405,000. More »
With so many abandoned and unfinished properties being sold at auction, a number of home buyers have been able to pick up property at a fraction of what the previous homeowners paid. But here's the story of an Illinois homeowner who learned that even the best of deals can sometimes have unhappy endings. More »
As we've reported numerous times during the last year, many banks have been planning to fight new financial regulations and swipe fee reforms by tacking on a host of new fees for everything from getting a paper statement to talking to a human being at the bank to closing an account. Now our corporate cousins at Consumer Reports want to hear from you about which ones have been creeping their way into your bank statements. More »
The recent tough times have forced many parents to pay closer attention to the bottom line. But are they doing so at the expense of their babies' bottoms? More »
If you have to go through the misery of a divorce, now is as good a time as any to proceed. Plunging home prices and the struggling economy have a way of making financial separations less painful, with some caveats. More »
A dismal jobs report sent all three major stock indexes, the barometers by which the nations measures its self-esteem, tumbling early morning Friday. The government reported that employers added no jobs in August and the official unemployment rate remained unchanged at 9.1%. The last time the headline employment rate was zero was February 1945. More »
The Institute for Policy Studies has just released its 18th annual review of U.S. executive compensation and found that 25 out of the country's 100 highest-paid chief executives actually earned more in 2010 than their companies paid out in corporate income taxes. More »
Jitters over this summer's debt-ceiling showdown helped push consumer confidence to its lowest level in more than two years. With unemployment levels still high and housing prices remaining low, "there is basically nothing for consumers to be confident about," analyst Gennadiy Goldberg told Reuters. More »
Now that economic adviser — and Consumerist pal — Austan Goolsbee has departed the White House, President Obama has a spot to fill. Today he announced the choice of Princeton labor economist Alan Krueger to be chairman of the White House Council of Economic Advisers. More »
A 0.8% increase in consumer spending may not seem like something to throw a parade over. And really, it's not. But it is the largest gain in 18 months and the first increase of any sort since April, so it's a reason to not frown. More »
The typical image of a foreclosure auction involves a seized house being sold for, at best, the remaining value of the mortgage. But that's not always so, with some auctions attracting buyers who pay above what's owed on the home. That money usually belongs to the former owner, but it looks like many aren't aware of this fact. More »
Customers of Payless ShoeSource have apparently taken the name of the business to heart, giving the company so little money that it has decided to shut down 475 poorly performing stores over the next three years. Of the shops — including sister franchise Stride Rite — being set up to be stomped, 300 are scheduled to be closed by the end of the fiscal year. More »
According to the Federal Deposit Insurance Corporation, fewer banks were at risk for failure in the second quarter. This marks the first time the number of institution's on the FDIC's endangered banks list has fallen since 2006, and is a sign that the finance industry is stabilizing. More »
The Social Security disability fund may not be able to make payments come 2017, according to a new analysis by the Congressional Budget Office (CBO). More »
After several quarters of decreasing mortgage delinquency rates, that number saw a slight uptick in the second quarter of 2011, according to the Mortgage Bankers Association's latest survey data. More »
The nation's largest bank is trying to get a wee bit smaller — at least in terms of payroll. A newly uncovered memo reveals that Bank of America plans to cut at least 3,500 jobs in the upcoming months, with the possibility that thousands of additional positions could also be eliminated. More »
It's like that scene in Groundhog Day, where Chris Elliott's character enters the Punxsutawney bachelor auction and is greeted by dead silence from the women in the crowd.... Once again, mortgage rates have dropped to record lows while potential home buyers continue to hold off on making a purchase. More »
Only months after the federal government shut down access to online poker sites come reports that Congress could soon consider a bill that would legalize online gambling. More »
We mentioned a few weeks ago that more Americans have begun paying down their credit card debt during the last two years rather than maxing out their accounts with stuff they can't afford. Now comes another sign of more responsible behavior... the rate of late credit card payments is the lowest it's been in 17 years — .That's an entire Bieber! More »
Once again, the folks at Money magazine have scoured the map of these fifty, nifty United States (from 13 original colonies) and, factoring in everything from jobs to schools to weather to stuff-to-do, come up with their list of the 100 Best Places To Live. But which of these towns have homes you can afford to buy? More »
It continues to be a buyer's market out there — for those with enough money to make a down-payment on a home at least — as mortgage rates continue to sink to historically low levels. More »
The U.S. Postal Service continues to deliver awful news, proposing job cuts of as many as 120,000 workers in an attempt to temper costs in the wake of massive financial losses. Projecting to lose more than $8 billion for the second straight year, the USPS also wants to set up its own health plan, pulling employees out of the federal system. More »
If you had to fork over $1,000 right now, would you be able to do so without borrowing money or using your credit card? If so, then a new survey from the National Foundation for Credit Counseling says you're in the minority. More »
Earlier today, an airplane buzzed Wall Street towing a banner that said, "Thanks For The Downgrade. You Should All Be Fired." Update: FORTUNE got in touch with the person who flew it. She's a Midwestern mother and an investment banker. More »
An Oregon woman who had recently moved out of her foreclosed home had been told by her credit union that she had until this Friday to clear her remaining property out of the home. But that didn't stop the lender from sending out a moving company this past weekend to take her stuff away anyway. More »
After swooning on Monday following S&P's downgrade of US bonds, stocks posted gains on Tuesday as investors saw the over-reaction as a buying opportunity. Now investors look to see what the Federal Reserve policy board might say after their meeting later today. More »
Our corporate cousins at Consumer Reports have released their monthly index of overall consumer sentiment, and it looks like all the worrying about the debt ceiling has caused the sharpest month-to-month drop in the index in two years and the lowest result since December 2009. More »
Frequent readers of The Onion's website may soon be forced to ante up if they want to keep up their regular dose of guffaws from fake news. The company has announced it's testing out a pay wall that would require payment from overseas readers or limit them to only a handful of articles per month. More »
It's a one-stop foreclosure shop. Under one roof is a law office, title company, and auction house. They act as their own notaries and can foreclose. Its owner and several of his top attorneys are even VPs at the Mortgage Electronic Registration Systems Inc (MERS) which gives them the ability to transfer mortgages from owner to the other. The Boston Globe profiles a local law firm that has attracted criticism from homeowners and consumer advocates for its vertically integrated approach to foreclosure that can speedily ride over homeowners who thought they were in the middle of working out a deal with the bank. More »
According to the U.S. Dept. of Agriculture's latest report on its Supplemental Nutrition Assistance Program (aka food stamps), a record 45.8 million Americans received SNAP benefits during the month of May, up 12% from the same month in 2010 and 34% from two years ago. More »
Markets opened on an upswing Friday as the labor report came in at 117,000 jobs added for July, higher than the predicted 85,000. The unemployment rate even ticked downwards to 9.1% from 9.2% in June. But the rally quickly evaporated as concerns about the growing European debt crisis and how government spending cuts might stymie economic growth took precedence. More »
Global stocks fell broadly Thursday afternoon amid worsening concerns about a global economic cooling and a European debt crisis. Each of the three major US indexes were down, deleting all the gains they had made so far this year. More »
A gas station owner in Florida's monthly mortgage payment bounced on October 12th. The next day he put the money required into the bank account. In November and December he tried to make his mortgage payments as normal, but BB&T wouldn't take his money. 10 months later, they still won't take it. Instead, they want to foreclose on his gas station. All for being one day late. More »
If you received a pink slip, a cardboard box and a security escort last month, you had plenty of company. Businesses laid off 66,414 employees in July, dampening the buzz from the 114,000 jobs that were created. More »
Last week, 30-year fixed mortgages dropped to 4.45 percent and 15-year mortgages hit a new low of 3.52 percent, meaning seemingly anyone who can afford a house payment had as much incentive as possible from the financing side to go out and close on a house. But the housing market is showing no real signs of recovery, and things don't look so great on the horizon, either. More »
Just in case you were feeling hopeful about our nation's recovering workforce, those Pulitzer-winning buzzkills at ProPublica had to go and compile a whole host of facts and figures that could turn your upside-down frown back into a regular frown. More »
If we'd told you 10 years ago that Borders and Circuit City would vanish off the face of the planet and Blockbuster Video would be auctioned off to a satellite TV provider for pocket change, many people would have expressed disbelief. But those once-great stores have had their heyday in history, so now it's time to look into the magic 8 ball to see if doom lies ahead for other major retailers. More »
Ever since word broke that the recession had ended about two years ago, doomsayers have projected a second, "double-dip" downturn could be on the way. While it takes months to verify that recessions have started or ended, there are signs that we may already have started that second dip. More »
If you've ever dreamed of being some sort of Wild West land baron, or maybe you and your friends want to act out the unmade final season of Deadwood, there is a town in South Dakota that can be all yours for the price of $799,000. More »
A disturbing and disheartening trend for job-seekers is the spate of listings out there that say if you don't have a job, don't bother applying for this one. It's a kind of discrimination, and it's legal. But it may not be for long. More »
From 2004 to 2008, while we all were busy flipping houses and blindly investing in luxury condo developments in Appalachia, credit card users were also spending $2.1 billion more in purchases than they were in bill payments. Since 2009, that tide has turned drastically. More »
The wealth gap between whites and Hispanics has increased to its widest in 25 years, according to new analysis of Census data by the Pew Research Center. We're talking a 20-1 ratio between whites and blacks, and an 18-1 between whites and Hispanics. Like so many things, it comes down the the housing crisis. More »
After years of anything goes loans-writing, the pendulum has swung far, far, in the other direction. Patrick tells the story of how his loan with Wells Fargo was denied, 1 day before he was set to close on a new condo. Even though he has an 800 credit score and was putting 20% down, this hiccup was enough to make Wells Fargo back up. And because of it, he and his five-month pregnant wife now have one week to find a new place to live. More »
In a cost-cutting move connected to the BlackBerry's inability to keep pace with smartphone competitors in the United States, BlackBerry maker Research in Motion revealed plans to slash its workforce by 10 percent, losing 2,000 jobs. More »
While some parts of the country continue to struggle, Texas has added over 500,000 jobs during the last five years, making it the overall leader in job growth, according to an analysis of statistics from the Bureau of Labor Statistics. North Dakota, which added about 41,000 jobs over the same period, takes the crown for percentage growth: non-farm employment is up nearly 12% there. More »
Though New York City real estate remains at a relative premium, a new report says that banks have ignored the upkeep of thousands of seized foreclosure properties, allowing them to fall into horrid levels of disrepair. More »
Mike Edwards, the CEO of the liquidating Borders bookstores emailed a farewell note to all Borders Rewards Members last night. In it, he looked back at the over 40 years of bookselling and imagination-stoking the chain has done and explained why they were closing down. Beyond the sentiments, he also explained some important things you'll want to know if you want to buy some books from them before they close their doors for good. More »
"Torpedoing." "Toasted." The food that Quiznos is having trouble selling is full of metaphors for how its business is going. Crunched by the recession, its own policies towards franchise owners, competitors adding toasters, and an "everyday value" strategy that ran counter to its position as a purveyor of premium sandwiches, Quiznos is on the edge of violating its loan terms and could go into default. More »
Real estate agents don't have it easy these days — well, these years — and their jobs have become even more maddening lately thanks to the recent trend of home buyers canceling sales at the last minute. The rate of home sale cancellations rose from 4 percent in May to 16 percent in June. More »
Back in May, the owner of a 1977 International Harvester dump truck valued at about $5,000 parked it in his Syracuse, NY driveway. Neighbors told police that someone came with a flatbed truck, loaded up the dump truck, and took it away. Did they buy the truck? Repossess it? No. The couple are accused of stealing the truck, then selling it for about $450 in scrap metal. More »
Goldman Sachs netted only $1.09 billion for the quarter, which isn't enough to please investors, spurring the company to shed 1,000 jobs. The trading-focused bank suffered a 63 percent drop in trading fees collected from the first quarter. More »
Small business are experiencing a cashflow crunch as the average time it takes to get paid by customers has increased to 48 days, up from 42 days in 2010. More »
Cisco employees are apparently paying for the company's ill-advised decision to spend $600 million to buy the company that made Flip video cameras. Cisco is reducing its workforce by 16 percent, cutting 6,500 jobs, including 2,100 early retirement volunteers, and losing other employees by selling a business. More »
We're doubling down on news related to the Minnesota government shutdown today. A red tape snafu has could potentially leave all Minnesotans without easy access to Coors Light, Miller, Olde English 800 and dozens of additional beers. Meanwhile, bars across the state are running dry because they can't buy more booze. More »
With the gears of state government ground to a halt in Minnesota, there are thousands of people left without income but who still have payments to make on their mortgages and car loans. But at least one bank has decided to give these folks the option of taking a small breather by allowing affected customers to skip one month's payment without incurring any penalties, fees or dinging your credit score. However, interest will continue to accrue. More »
Florida is full of condo complexes run by homeowner's associations. After you've bought and paid for your condo, all you have to do is pay the monthly maintenance fees and you get trim lawns, a snappy billiards room, and a clean shuffleboard area. But as the economy stews in its own juices, the AP reports, some seniors living on a fixed income are having trouble making these monthly payments - and no wonder, with special assessments of $6,000 - and are getting foreclosed on by their own neighbors for as little as being 60 days past due on their fees. Some of them have also stopped making payments in protest over things like the rats, and the sewage raining on their head: More »
An Iraq War veteran has filed a potential class-action lawsuit against CitiGroup's CitiMortgage division, alleging that the lender violated the Servicemembers Civil Relief Act by foreclosing on his home and that of "thousands" of other active-duty soldiers. More »
When the economy went down the tubes, times got particularly tough for black households, whose median net worth dove 83 percent from $13,450 in 2004 to $2,170 in 2009, according to the Economic Policy Institute. In comparison, the median net worth in white households dropped 24 percent, from $134,280 to $97,860, in that span. More »
Unless lawmakers somehow maintain the funding of welfare programs at current levels, the nation's poor could suffer a devastating loss of income by the end of the year. According to an estimate by Moody's Analytics, $37 billion in extended benefits are set to expire. More »
No matter what the gross domestic product says, the recession isn't over for you unless you're gainfully employed and not mired in pay freezes or threatened with downsizing. But as the economy slowly recovers, you can use what you've learned during the economic downturn to strengthen yourself for whatever is coming next. More »
With every story we write about increased credit card fees, slashed rewards programs or hacked bank databases, a growing number of readers have expressed a growing interest in ditching their plastic and going cash-only. More »
Just over a year ago, the powers that be in Philadelphia effectively decriminalized possession of small amounts of marijuana by offering offenders the chance to enroll in a three-hour class that would expunge the offense from their records. Not only did this give Philadelphia police more time and energy to focus on more serious crimes, it has also saved the city a pretty sizable Ziploc bag of green stuff. More »
With a sea of homes left empty by erstwhile homeowners who couldn't afford the mortgage, a number of homeowner associations around the country have are stuck having to pay for the upkeep on vacant properties lest the value of the remaining homes be harmed any further. More »
Markets rose as a day before the Labor Department releases its official monthly jobs report, two other reports came out that strongly suggesting it will be a pretty good one. More »
If you're unemployed and worried about losing your home, here's some news that might make your day a little brighter. The White House announced earlier today that all FHA-approved mortgage servicers must extend the forbearance period for unemployed homeowners, currently four months, to one year. More »
Massive hiring by several vehicle manufacturers is a telling sign that the auto industry has straightened out of its skid. General Motors and Honda are looking for a combined 3,500 new workers, and Volkswagen added 2,000 employees at a new plant. More »
If you've ever been turned down for a credit card, auto or student loan — or maybe your application was accepted but you didn't get the best interest rate — and wanted to see a copy of the actual credit score used in the lender's decision-making process, you were probably out of luck. But starting July 21 lenders will be required to show you the score. More »
If you're looking for some not-so-bad news on the economy, here's a morsel for you: The number of individuals filing for bankruptcy during the first six months of 2011 is down significantly compared to the same time period in 2010. More »
Coney Island has removed the toilet paper from women's stalls and is forcing patrons to form a line to get their ration of TP squares from a Park's Department bathroom attendant. Pictured at left, is the queue. More »
It's a lovely surprise to get in the mail from your bank, a letter telling you they're going to cut your mortgage balance in half while increasing your interest rate slightly. NYT reports that tens of thousands of option-arm mortgagors, homebuyers with a loan that had a low introductory interest rate that shot up after a set period, have been getting such letters from Chase and Bank of America over the past year. More »
Windex today launched Windex Minis, which let you refill your bottle of Windex by pouring in a pouch of Windex liquid, adding water, and stirring. They're cheaper and there's less waste. The bigger question is whether Americans will even go for a refillable at all. More »
As we noted this morning, there is a small respite from the recent glut of melancholic economic news: home prices inched upwards. Yep, on Tuesday, the widely-watched Standard & Poor's/Case-Shiller index posted a rise of .7% for April. Let's put that in context with this chart. No, that's not just an ink smudge. More »
With millions of homeowners still having difficulties catching up to their mortgage payments, the federal government continues to look for ways to stem the tide of foreclosures. The latest effort provides loans of up to $50,000 that some homeowners will never have to repay. More »
If the Japanese disaster and out-of-control oil prices slowed economic recovery in the first half of 2011, a second half of the year free of such setbacks could mean better days for the economy. This is according to analysts who say economic growth is set to ramp up. More »
Major League Baseball seized control of the Dodgers in April and blocked a proposed TV contract with Fox, and now the team has filed for bankruptcy in what seems to be the owner's last-ditch effort to keep the franchise from slipping away. More »
One week after Marilyn Monroe's dress from The Seven Year Itch fetched a whopping $5.8 million at auction, the iconic red and black zipperiffic calfskin jacket from Michael Jackson's "Thriller" video managed to scare up $1.8 million from a buyer. More »
While one might initially expect an increase in shoplifting to be a sign that more people are facing dire financial straits, there are those who believe the recent uptick in retail theft could actually be a hint that the economy is improving. More »
Recent immigration crackdowns in Georgia have left the agricultural sector with a labor shortage. A big one. An unscientific poll puts the gap as high as 11,000 workers, but plants still have to be harvested. The governor responded to farmers' complaints with a new program that puts people on probation to work in the fields at minimum wage, with bonuses for high production. This seems like an ideal match: probationers have a higher unemployment rate than the general population, and farmers need people in the fields. It turns out, though, that hard work, hot weather, low pay, and inexperienced workers don't make for a very bountiful harvest. More »
The house made famous by Home Alone, the 1990 movie that showed us all it's okay to be neglectful parents of obnoxiously precocious children because that same precocity will come in handy when fighting off a pair crooks straight from Central Casting, has been up for sale for a few months now. But in spite of all the press this piece of real estate has received, it hasn't attracted a buyer. More »
While there may be a load of mansions and McMansions sitting empty or half-finished as a result of the economic collapse, don't take that as a sign that the wealthy are bogged down in the same swamp as the rest of us. According to a study from our research-happy relatives at Consumer Reports, America's well-to-do have been on the upswing for almost 18 months while lower-income families continue to feel the pinch. More »
Doing nothing to help views that the job market is weakening, the Labor Department announced this morning that jobless claims rose by 9,000 last week. It was the largest increase in a month. The dim news just added on to the pile of sad following the Fed's no-surprise-to-anyone pronouncement yesterday that the economic recovery wasn't happening as quickly as we once thought. More »
Expect some much-needed relief at the pump! The US and its industrial allies unexpectedly announced that they're releasing 60 million barrels of crude oil from reserves over the next 30 days. The move came after a recent OPEC meeting failed to result in increased production. Oil prices immediately kicked down 4.5% on the news. Time to fill up the 'ol SUV and do some donuts before the market realizes it overreacted and prices go back up! More »
Now that the economic downturn has well set in and there's no booming recovery around the corner, it's a good moment to take stock of the little things that have changed. Ed, a dry cleaner in Brooklyn, says, "I'm seeing a lot more repairs, a lot more patches." More »
While some of us have managed to go back to our pre-bust ways of eating gold-dusted diamonds and speculating on real estate, the Federal Reserve said today that the overall economic recovery hasn't moved as swiftly as it had previously expected. More »
Between June and November of 2008, while the nation plunged into economic turmoil, car leasing dropped off by 58% as people looked to save money wherever possible. Fast forward to the present day where, because of that drop-off in leased vehicles, the supply of late-model vehicles coming up for resale will soon be shrinking. More »
A 59-year-old man recently walked into a bank in Gastonia, NC, intent on robbing one dollar — no more or less — from the financial institution. Was it because he was aiming low for his first foray into bank robbery? No, he says it was because he needs medical care and the only way he could think to afford it was by going to prison. More »
At their current pace, it will take New York State lenders 62 years to repossess all the houses currently in foreclosure or severe default, NYT reports. That's good news for some homeowners looking to get a break while they try to get out from behind the eight-ball with their debts. Some of them could even be dead by the time the house repo man comes to collect. More »
Wells Fargo is the next bank to announce that they are pulling out of the market of selling reverse-mortgages, a loan typically sold to to seniors that converts their home equity into a stream of monthly payments. The lender gets paid when the home is sold at the borrower's death or when they move. Without reliably rising home values, it's not a very profitable proposition for lenders. More »
What has cable company executives losing sleep at night? It's certainly not thoughts on how to improve customer service or billing. But it's also not Netflix, Hulu, BitTorrent or any other obvious customer siphon. No, cable suits confess, it's actually the fact that a growing number of Americans find themselves too poor to pay to watch TV. More »
For decades, U.S. debt collectors have plied their trade under the watchful but lazy eye of the Federal Trade Commission, which has the authority to go after the worst of the bunch but can't create new rules governing these businesses. But later this summer, debt collectors will come under the supervision of the new Consumer Financial Protection Bureau... and that scares them, especially after complaints about debt collectors jumped 17% last year to 140,036. More »
It now takes an average of 565 days from a homeowner's first missed payment until a lender ultimately forecloses on a property. It takes significantly longer — 807 days on average — in Florida, a state with a large number of underwater mortgages. And then there are all the people who won't necessarily go into foreclosure but who have been advised not to make payments in order to qualify for a loan modification. This all adds up to millions of Americans who have gone at least one year without making a single payment. More »
Earlier today, President Obama popped into the White House Personal Finance Online Summit, where our own Meg Marco was in attendance. Speaking to the small group of writers, the president offered up his advice on personal finance. More »
Even though the economy has begun to demonstrate occasional signs of life, many Americans are still feeling the sting of those darkest days. Millions of homeowners are struggling to pay mortgages they can't afford and those that have walked away from underwater loans now have battle-scarred credit reports. So in order to stay afloat, more consumers are taking loans from their own retirement savings. More »
The newly released US jobs report shows the unemployment rate rising to 9.1% for May, the highest it's been all year. On the face of it that looks like a faltering recovery. But hidden in this raw number is good news. More »
The average price for a gallon of gasoline in the U.S. has been hovering just below the $4 mark for quite some time, with the average now at around $3.80 per gallon. But earlier today, the CEO of Gulf Oil said he expects that price to dip down at least another $.30 by the time we're setting off fireworks and painting our faces red white and blue for the Fourth of July. More »
The folks at ProPublica recently looked into the all-too-common problem of homeowners who thought they had successfully run through the loan modification gauntlet only to later find out that their bank had no record of the reduction and their house was suddenly in foreclosure. More »
Until recently, one Arkansas family had been living well in a spacious 2,000 sq. ft. home. But after realizing that they were paying a mortgage for a house they didn't fully utilize, they decided to downsize... significantly. More »
In a rural area in Maryland, reader MrStinkhead came across something that's not so unusual: a mansion in the middle of a swath of farmland. What makes it unusual is that construction stopped partway through, sometime in 2010, and the building has been left exposed to the elements since. We don't have any more details than that, which makes it nicely mysterious. More »
Home prices continue to fall so hard that it's tempting to believe they've either hit bottom or will do so soon. But some economists think home prices will remain depressed for a decade or more. More »
The folks behind the all-important Case-Shiller Home Price Index have released their numbers for March 2011 and for the eighth month in a row, the average price of a home in the U.S. has declined. Only two of the 20 cities in the index — Seattle and Washington, D.C. — experienced even a slight uptick from the previous month, while a dozen cities are at or near four-year low points. More »
State attorneys general have warned the nation's top banks that they may face as much as $17 billion in lawsuits over foreclosure practices if they don't reach a settlement with the government. That number comes on top of billions more that the banks could owe to federal agencies including the Department of Justice. More »
Want a house for free? Bank of America is giving away 150 of them in Chicago. It's a great plan. The bank gets some worthless properties off its books without the cost of trying to hold on and sell them, the city gets some cheap affordable housing, and BofA gets a PR bump. It's win-win-win, with two of those wins being Bank of America's. That's the Chicago way. More »
Do you enjoy the process whereby you perform tasks for others in exchange for compensation? Then don't move to any of these 10 cities. They're the worst ones for job seekers! More »
Aftershocks from March's earthquake and tsunami in Japan will reportedly hit home in the advertising world in the coming months, due to Japanese auto manufacturers' supply shortages. And the new victims will be the bottom lines at newspapers, as well as TV and radio stations. More »
Just when you think the beleaguered bankers of the world can finally stop dealing with pesky investigations into their roles in the recent financial ugliness (some would call it a global economic meltdown), some Columbo-like snoop has to say, "Just one more thing" and open up all new cans of worms. The latest can-opener is New York state Attorney General Eric Schneiderman, who has reportedly begun a broad investigation of Goldman Sachs, Bank of America and Morgan Stanley. More »
The news about the economy — and more precisely the real estate market — is full of shrugs and dart-throwing guesswork about exactly where prices and interest rates will go in the coming year. So, reports the Boston Globe, a growing number of home buyers are looking to the spirit world for guidance and assistance. More »
Even though Exxon Mobil alone earned more than $30 billion in profit in 2010 — and has reported a huge 69% increase in profit in the first quarter of 2011 — that company's CEO was one of several oil biz execs trying to convince the Senate Finance Committee that they still need $21 billion in tax breaks. More »
A new report by Zillow says that 28.4% of all single-family houses in America with mortgages are underwater. No, we're not talking about flooding in the south, but homes that owe more on their mortgage than they are worth. It's even worse in places where the bubble was the biggest. In Tampa, FL, 59.8% of homes have negative equity and in Phoenix, AZ, it's 68.4%. Declines in home values are still happening and Zillow doesn't see a bottom happening until 2012, at the earliest. More »
Some homeowners are taking advantage of a little-known loophole in the bankruptcy law to get rid of their second mortgage and also avoid the pain of foreclosure, reports the San Jose Mercury News. Here's how it works: More »
The New York Federal Reserve just issued its latest quarterly Household Debt & Credit report — which looks at the state of mortgages, home equity borrowing, auto loans and credit cars — and, for the first time in a few years, there are a number of not-so-bad things to say about things. More »
For those potential home-buyers with enough money for a down payment, it looks like you may want to start scanning the real estate listings. According to Freddie Mac, the average rate on 30-year fixed-rate mortgages has hit a four-month low. More »
Now that it's more expensive to fill up your gas tank than it is to take a family of six out to the movies, folks are trying to stretch that fuel dollar as thin as they possibly can. Unfortunately this has led to a jump in the number of stranded motorists in need of a few drops just to get them to the next gas station. More »
This year's Fortune 500 list is out, and while Walmart's $421 billion in revenue may have beaten out Exxon Mobil's paltry $354 billion, the oil giant beat out Big W where it matters most, profits. According to Fortune, the crude colossus made a whopping $30.4 billion in profits last year, nearly double what Walmart made and over $10.5 billion more than the next most profitable company on the list. More »
When you lose your job, you don't want to be coddled by friends and family, and can be more sensitive to subtle, unintended condescension. It's easy for others to inadvertently say the wrong thing, so a primer is in order to set some rules for social etiquette in place. More »
When customers pay by debit card, it's a common practice in the hotel and restaurant business to put a hold on their account for an estimated amount of the purchase. That way, there is still flexibility for you to write in a tip or to cover any other ancillary costs. Now, more and more gas stations are taking this approach for debit card customers who swipe at the pump, putting holds in the range of $50 to $100 that can linger on your account for days. More »
As gas prices continue to float around the $4/gallon mark, the cost of biofuel is also higher than it has been. And according to grease industry insiders, this has led to an increase in thieves making off with restaurant fryer grease. More »
It's considered a given of home ownership that allowing your home to go into foreclosure is a last resort, something that you only do after you've exhausted all other options. However, according to new information from credit-scoring firm Fair Isaac Corp. (FICO), more homeowners are intentionally choosing foreclosure — or "strategic default" — and that those borrowers tend to be pretty savvy consumers. More »
When the going gets tough, the weak get going on their babies. A new study finds a rise in "shaken baby syndrome" correlates with economic downturns. At one hospital, the number of babies that were hospitalized for what is known as "non-accidental head trauma" doubled during th recession. More »
It's no secret that foreclosures in America have been a royal mess. Missing paperwork, faked documents, turbo-charged courts that just rubberstamp foreclosure orders, robosigners, the list goes on. Along the way, a number of homeowners have gotten foreclosed on improperly and, in some cases, even illegally. So regulators are putting together a plan for grand-scale recompense. They've laid down decrees that servicers have to start following the law, for really reals this time, banks need to hire outside firms to review their foreclosure actions between 2009 and 2010, and then pay back their victims. More »
Someone at the Attorney General's office must have finally looked at how high gasoline prices are right now and thought, "Maybe there's something more than meets the eye here," because President Obama announced earlier today that the AG is gathering his forces to see what, if any, behind-the-scenes shenanigans are going on to keep prices so high. More »
You probably don't get to have one the 400 highest adjusted gross incomes in the U.S. without having a clever accountant — and probably an entire law firm — at your disposal. So it shouldn't come as much of a surprise that the folks who have attained that level of wealth are paying less income tax these days than they were in the early '90s. More »
Here's one receipt you might want to have checked... Even though today isn't offically "Tax Day" (that's been moved to April 18 this year), the White House has gotten into the spirit with its online "Federal Tax Receipt" calculator that intends to show you where your tax money is being spent. More »
According to researchers, suicide rates rise when investments tank and the job market becomes less forgiving, especially among those in the post-college, pre-retirement age range. More »
Even though electronics are a huge business, the devices are getting smaller and the number of people purchasing them from online outlets is growing. Thus, the nation's biggest retailer has decided to cut the amount of floor space it dedicates to all things electronic. More »
Two years ago, Cisco spent nearly $600 million to acquire the company that makes Flip video cameras. Apparently that was a mistake, because the networking biggie announced earlier today that it will be shuttering its Flip division as it faces increased competition from video-capable smartphones. More »
A guy who deserves no breaks at all, a speculator who jumped onto the house-flipping craze just before the music stopped, just got a huge one. Instead of making the final stroke to finish foreclosing on his house, the bank decided to write off the loan and just give it to him for free instead. More »
To counter enrollment dips brought on by students who drop out or move on, some colleges have taken to accepting students, but only if they attend a different school for a predetermined length of time and maintain a certain GPA. More »
The malls of America have seen better days. In the wake of the still-lingering economic downturn, vacancy rates at shopping centers — of both the "classic mall" and "strip mall" varieties — are at their highest levels since the twentieth century. More »
Having trouble making your mortgage payment? Think the paint job on your house could use some splash, color and branding? Then there's an ad agency you might want to talk to. More »
Lovers of lukewarm pizza, despair. Troubled pizza chain Sbarro is getting ready to file for Chapter 11 Bankruptcy. The slice slingers are $365 million in debt and made the move after missing their interest payments. Part of the reason Sbarro has been suffering is because it has a lot of shops tied up in malls. Traffic to those dying down with the recession and the rise of online shopping has meant fewer patrons hitting the food court. The other reason is that their pizza is just sad. More »
Grocery Shrink Ray use tends to be more prevalent during a down economy, as manufacturers look to cut down on costs while making it appear through packaging as though they're giving you the same amount. The practice takes more of a toll on consumers when they have less money to throw around. More »
Lest you think it's just those of us eking out a meager living that are unhappy with the growing trend toward stripped-down flights with a la carte fees, a new survey says that those who can afford to fly are even angrier than we are. More »
Michigan's governor signed a bill into law that will cut unemployment benefits by six weeks — bad news for would-be workers in a state that's been marred in 10.4 percent unemployment. More »
As housing prices sank to their lowest levels since 2002 in February, the number of new houses sold took a much harder fall, dropping 16.9 percent from the previous month. More »
House prices are dropping like game-winning Derrick Williams and-ones, reportedly now sinking in February to an average of $156,100, the lowest point since 2002. More »
The latest Census Bureau results show that 17.45% of homes in Florida are vacant. That's 1.558 million houses sitting there soaking up the sun. Florida's housing bubble was one of the hottest and now their vacancy rate is the highest. More »
It used to be that getting a real estate license was the fallback career change du jour, then after the housing market collapsed it seemed everyone was going to law school. More »
In lieu of passing around a collection plate to pay Carmelo Anthony's salary, Madison Square Garden announced Knicks ticket prices will rise by an average of 49 percent next year. New York Rangers hockey tickets will bump up 23 percent. More »
When AOL decided last month to spend $315 million on Huffington Post, the internet's eyebrows raised in confusion about how the struggling company could afford such an acquisition. More »
The latest report from RealtyTrac on foreclosures shows a precipitous drop in the number of foreclosure filings between January and February, and that the total number of foreclosures in February was the lowest since February 2008. If you only want to hear the good news, stop reading now. More »
In an effort to prove that demand for gasoline isn't quite as constant as oilmen would like to think, consumer advocates are taking to social media sites to get drivers to skip trips to the pump today. More »
The eco-friendly folks at Seventh Generation are set to release a new package for their laundry detergent that uses 100% recycled cardboard instead of plastic for the bottle. More »
Even though it's referred to as "paper" money, most of the material used to produce U.S. banknotes is actually cotton. And with raw cotton costs at a 140-year high, it's costing more money to print money. More »
Plans are in the works to dismantle Fannie Mae and Freddie Mac, and that could mean that what many Americans had assumed came fourth after "life, liberty and the pursuit of happiness," the 30-year mortgage, could be on the outs. More »
As gas prices have continued to rise in recent weeks, the people of Suffolk County in New York must have been so happy they passed a law that would cap sales tax on gas. The regulation was supposed to have kicked in on March 1, but, well... someone goofed. More »
The stock market and gross domestic product may say the recession is over, but as long as the unemployment rate hovers near double-digits, it's tough to believe things are going well. A report on the retail industry reveals businesses are set to improve the job market with strong expansion plans this year. More »
While the latest numbers show consumer confidence may be at a three-year high (which may not be saying much), the average home price in many major cities continues to sink, with nearly a dozen of these areas hitting post-boom lows in December. More »
It's a buyer's market for any corporation looking to stock up on talent. Intel is one of all too few businesses taking advantage of increasingly desperate job seekers, announcing it will add 4,000 workers in the U.S. this year. More »
Looking for a new job in the current climate is difficult enough. And most currently employed job-hunters can't risk losing have the added onus of worrying about losing that gig if their bosses find out. More »
At any given moment, the Las Vegas Strip is strewn with gown-wearing brides and unshaven grooms with befuddled, what-have-I-done looks on their faces. But tough economic times have brought the population of these leap-before-you-lookers down to its lowest level since 1993. More »
While defendants in criminal cases are guaranteed lawyers, folks involved in foreclosure cases either have to go out of pocket for a lawyer or try to fend for themselves. Now the state of New York has become the first state to guarantee legal representation to all residents involved in foreclosures. More »
The last few years have been tough on just about everybody and many of us have reacted by scaling back, buying generics instead of brand names, eating cheaper cuts of meat instead of the good stuff. But since so many people are demanding the less-expensive beef, the lower quality meat now costs more than the better stuff. More »
NYT reports that the real estate crashdown isn't just limited to Potemkin-village style build-n-flip hotspots like Vegas and and Florida. That's just where it started. The giant needle of bubble popping is plunging through Seattle, where prices are down 30% from last year, and is making swift work of Minneapolis and Atlanta. One expert predicts prices could drop another 5 or 7% nationwide. Get out the dramamine, it's double-dip time. More »
Gamers who buy the annual Guitar Hero releases will have some extra spending money this year, because publisher Activision Blizzard announced it will release no music games in 2011. More »
Federal Reserve Chairman Ben S. Bernanke testified before the House Budget Committee today that he expects unemployment to "remain elevated" "for some time." So if you were putting your job search on the back burner, thinking, "oh, I'll just try harder when the economy gets better," it might be time to reevaluate that strategy. More »
Inflation can hit your refrigerator the hardest. Rising food prices amid stagnant salaries and a stiff job market can make it tougher to make ends meet. More »
A new study says that housing prices in the U.S. have finally gone back to a level of affordability that we haven't seen since before the rapid price inflation of the mid-2000s housing boom. More »
There are two big calendar dates in the offing for many consumers: Valentine's Day and Tax Day. So it would only make sense to look at those stupid financial mistakes we make in the name of love. More »
In an effort to put more original content on its network — and ad revenue in its pockets — AOL announced today that it will be purchasing popular news and opinion site HuffingtonPost.com for a princely sum of around $315 million. More »
During a snow-battered January, US employment only rose 36,000, well-below the expected 145,000, according to the just-released jobs report by the Department of Labor. Unemployment also fell to 9% by .4 percentage points. While that looks odd on the face of it, the difference is largely because that rate is calculated using a different report than payroll data. So, how's your job-search going? If the answer is, "poorly," you're in good company. More »
It sounded too good to be true: comedian Craig Rowin made a series of web videos asking for $1 million, and then he announced he had received it. A rich benefactor named "Benjamin" had seen the videos and was amused by them enough to hand over the cash. The videos went viral, Craig went on TV and international news teams were dispatching crews to cover his amazing story, which he maintained was completely real. Then at the end of the check-handing-over ceremony on Wednesday night, Rowin burned the check on stage and revealed it was all a hoax and the "investment banker millionaire" was an actor he had hired. Sorry, dreams. More »
Living inside an apartment building that has been foreclosed on can become a living hell when the building crumbles into disrepair around you and there's no landlord to call. Bursting heat pipes, cockroaches, mice, hunks of ceiling falling on you, and black mold seeping up the walls have become the new neighbors to tenants in one low-income apartment building in the Bronx where the landlord has long since checked out. More »
The vacancy sign is blazing over house divisions across the US. About 1 in 10 houses in America have no one living inside them, according to new data from the Census, CNBC reports. (Update: while technically correct, this number includes other kinds of properties like abandoned farm house. The more typically used number, the home-vacancy rate, is 2.7%, up from 2.5% the previous quarter). More »
Last month, we wrote about the Forbes survey that found that nearly one-third of of those who combined finances had admitted to lying to spouses about money. But once you've cheated, what's the best way to come clean to your better half? More »
In what is the most disturbing tale of the aftershocks of the economic downturn, in Canada an outdoor adventure company is being investigated for the "execution-style" mass killing of 100 of its sled dogs. The sled dogs were not as in demand after the Olympic Games in Vancouver were over, so, when the tourists went, the dogs had to go too, reports the Vancouver Sun. More »
Are you really getting the best deal from your outplacement firm? WSJ looks at the cottage industry of consultancy firms that companies hire to help fired employees get new work. Problem is the level of service some of the lower-bid firms provide reflect their cost. More »
For all its tough talk, the Treasury can't do jack to reign in lenders who are wrongfully denying home owners loan modifications. After seeing reports that some banks were basically modifying no loans at all, Treasury staffers huddled up to talk about withholding payments and levying fines on the baddest of the bunch. Unfortunately, they were told by their own lawyers that they don't have that power. ProPublica reports, "staffers were walked back by Treasury lawyers, who said the government was only party to a commercial contract with servicers and not acting as their regulator." More »
Facing budget cuts and student-siphoning charter schools, it's tough to blame a school district for accepting donations from anyone who's offering. But even in this desperate climate for public education, a Florida elementary school turned heads by accepting $20,000 in donations over the last two years from a strip club owner. More »
A scrawled note scotch-taped to the New Rochelle train station in New York tells passengers that they better hold it. The city has decided that's it too expensive to keep the bathrooms open. The recession takes its toll on your toilet. More »
The best job-hunting advice is to have powerful friends who owe you favors, but the second-best may be to have a resume that doesn't bury your chances at employment. While an excellent resume may not be able to land you a job, an awful one sure can take you out of the running. More »
With the economy kinda sorta picking up, and consumers in China, India and Brazil buying cars in droves, gas prices are expected to keep going up, and may hit $4 a gallon by early spring, when Americans finish scraping the ice off of their windshields and begin planning road trips. And unlike 2008, when gas last broke the $4 barrier, only to later drop to lower prices, $4 may be a new baseline, followed by $5 gas as early as next year. More »
If you're one of 250 Maryland homeowners with a foreclosure order signed by Ally Bank's Jeffrey Stephan, you've just been granted a reprieve. The bank is withdrawing all Maryland foreclosures authorized by Stephan, who admitted that he casually signed off on thousands of foreclosures each month. But homeowners aren't completely off the hook. Ally plans to restart the foreclosure process with new filings. More »
When you're in the market to buy a new home or investment property, it's one thing to get a pre-qualification over the phone and a completely different thing when you later sit down and actually apply for a loan. So before you get too far into the process, you should know which factors could end up inflating the interest rate on your mortgage. More »
We've been warning readers for years against "refund anticipation loans," where tax preparers like H&R Block and Jackson Hewitt give you a pre-paid debit card now loaded with your expected return (minus fees and interest). And yet, these cards have continued to appeal to some lower-income taxpayers who don't have bank accounts for direct-deposit of their returns. Now the federal government is providing these people with an alternative — a debit card that will accept the direct deposit. More »
A student at the University of Colorado, Boulder, is making headlines after deciding to pay for all $14,300 of his semester's tuition in $1 bills. More »
All he wanted was to delay things just a little bit more so that his dad would have some more time to try to work out a deal between the lender to get that holiest of holies, a loan modification. So, in a desperate attempt to save his dad's house, a guy shows up at the foreclosure auction and tries out two classic comedy bits. More »
After a couple years of hiding in the shadows, credit cards targeted at consumers with less-than-stellar credit ratings are once again making a push to gain new customers. More »
2010 was a record-setting year for foreclosure filings in the U.S., with almost 2.9 million properties being forecloses on nationwide. But more than half of those filings happened in California, Florida, Arizona, Illinois, or Michigan. More »
The jobless aren't the only ones who are suffering during the economic downturn. Many of those who lose their jobs and find new ones take significant pay cuts, with little hope of reclaiming their former income levels. More »
If you're sick of just getting plain-old cash out of the ATM, head over to the Golden Nugget in Las Vegas, where you can withdraw funds from your account in the form of gold. More »
Job-listing site CareerCast.com recently released its list of the best and worst jobs for 2011, and now I'm really wishing I had finished that philosophy minor, because apparently being a philosopher is better than being a doctor or lawyer. More »
Although ever-growing ticket price inflation somewhat masks the slowdown, fewer people are going to movie theaters. Sales slumped to 1.35 billion in 2010, a 5.4 percent drop from 2009 and the lowest mark since 1.33 billion tickets were sold in 1996. Revenues were still high, surpassing $10 billion for the second time ever, thanks to high ticket costs and 3D surcharges. More »
In a potential sign of a mending economy, unemployment claims for the week ending Dec. 25 fell 34,000 to 388,000, the lowest levels since July 2008. However, the good news might be slightly enhanced by it being the week of Christmas, which can throw a wrench into into how the claims are tallied. The last two years have seen the same trend, with claims then jumping upward in January. The news was received by unemployed folks in the same way as when you were a kid you found a cool wrapped present only to discover it was only a decoration. More »
With 96 percent of the top 500 American corporations turning profits this year and stock prices soaring to the highest levels since the recession began, you'd think you'd start to see a dent in that near double-digit unemployment rate. But that's not so, partially because companies are boosting their bottom lines by moving toward outsourcing. More »
If you've been unemployed 100 weeks or longer, you're in luck. No, you're not about to get a new job. But for the first time, the Bureau of Labor Statistics will accurately track the length of time you've been unemployed when calculating long-term unemployment. Previously, the agency had to check off "99 weeks or over" for anyone unemployed longer than two years. See, the recession isn't all bad, is it? More »
As part of the extension of the Bush tax cuts, Social Security payroll tax will drop from 6.2 percent to 4.2 percent. That means you'll be taking home more money each paycheck, even if your stingy employer has frozen your wages. More »
If your wallet is feeling a bit lighter these days, it's probably because you've done your part over the past few weeks to give the retail sector a needed boost. Holiday spending in the 50 days before Christmas this year was up 5.5 percent over 2009, which yielded a 4 percent increase over 2008. More »
Cries of "they took our jobs" can be replaced with "they took our votes," thanks to census data that will shift seats in the U.S. House of Representatives and electoral votes away from the Midwest and Northeast to southern and western states. More »
If your pay rate has been frozen for the last couple years, take heart — you're doing better than the average paycheck slave. Total American wages dropped 3.2 percent in 2009, according to the Bureau of Economic Analysis, which pins part of the blame on manufacturing and construction industries. More »
Several hundred Yahoo employees received the opposite of a Christmas present this week, learning the company is letting them go to ease its payroll burden. In addition to shedding 4 percent of its workforce, the shrinking web giant is shutting down AltaVista, Buzz and Delicious — according to an internal company slide. More »
Are you a team player? Do you have a proven track record as a problem solver in a fast-paced, results-oriented environment? If so, you might want to think of better ways to describe yourself the next time you're applying for a new job. More »
The Fire Department in New York City thinks the taxpayers should no longer be the only ones paying when firefighters are called to the scene of a car crash. Starting next summer, the FDNY will begin billing their time to the motorists involved in the incidents. More »
Most of us won't be retiring anytime soon. But for those few who will be saying goodbye to the workforce forever in the next few years, the people at TopRetirements.com have put together their list of the worst states in which to live out your golden years. More »
Property valuation site Zillow says that signs of stability in the housing market are vaporizing, and U.S. home values are poised to drop another $1.7 trillion this year. More »
Just how big exactly was the bailout? And which banks got which kinds of loans? And how many did they get? It's been hard to figure out, but now the Fed has released deep data on the over 21,000 different loans it made during the financial crisis—loans that were supposed to help encourage the banks to resume lending again. ProPublica has put all the numbers together into a searchable and filterable database so you check and see what kind of treasure chest your bank got. More »
You may have noticed it's dang hard to get a good rate for saving money right now. Used to be you could get an online savings account with 5%, no problem. Now if you can get in the upper 1% you're doing pretty good. So what's the dilly? More »
There are few things as depressing as having your house taken away from you on Christmas Eve, so the people at Freddie Mac and Fannie Mae are issuing a brief moratorium on evicting people from foreclosed properties during the holiday season. More »
Unless Congress acts quickly, unemployment benefits will stop cold for 2 million Americans who have been jobless for 99 weeks. Benefits have already been extended well past normal lengths, but if no other extension comes, the loss of income will make the holidays sting that much harder for people unable to find work for nearly two years. More »
Rob noticed something uncanny about this sign spinner advertising for a local jewelry store. He was drawn in by her defined features and lifeless gaze, and the expert way in which she moved the sign in the exact same motion every time. Upon closer inspection, he realized that she was no ordinary sign spinner, but an android! More »
The number of banks on the FDIC's "in danger of failing" list grew to 860 in July-September, a 17-year high. That number is up from 829 the previous quarter. The list is secret but even if your bank was on it, it doesn't mean that it's going to fail, only that it might. So what's a good way to give your bank a checkup? More »
One month after Chrysler announced it would invest $1 billion into a pair of Michigan plants, the car company has said it intends to put nearly that amount of money into its transmission plant in Kokomo, Indiana. More »
Still don't understand quantitative easing? Is it really just "printing money" or something more subtle? These animated xtranormal pig bunnies seem to have a grasp, at least judging by the millions of hits this movie of them explaining it has gotten. "The only thing deflating is the Fed's credibility," says one pig bunny to the other. More »
Children are an overlooked victim in the mortgage meltdown. Experts are growing concerned about the negative social, emotional and academic impact foreclosure turmoil is having on kids. Everything from forced relocation, moving to a new school, seeing your parents at each other's throats over money, to coming home and finding all your belongs in the trash takes its toll, and there isn't currently a public policy response to address the issues. More »
These may be hard times for the working man, but they're boom times for con artists. In a tough financial climate, it's more tempting than ever to seek out extra income streams, taking flyers on opportunities with which you may have little experience. That's where shysters come in, ready to exploit your need for quick, easy money while hoping you overlook things that don't seem quite right with their propositions. More »
Beleaguered homeowners who can't pay their mortgages and risk losing their property to banks can try a Hail Mary pass to keep sticky-fingered bankers away from their real estate. They can ask banks to show them the promissory note that they signed during closing, promising to pay the mortgage. If the bank can't immediately dig up the paperwork, homeowners will most likely buy some more time. More »
It's tempting to invest in markets that are taking off, but the wisest investors find opportunities that have bottomed out or are just getting started. The fastest way to lose your money is to buy when your target is at its high point. More »
For the first time in a long while, foreclosures actually dropped in October, falling 9%. The big drop came about as several big banks halted foreclosures across the board after news about the robo signers began to emerge. Foreclosures are expected to pick back up again November, albeit at a softened pace. It may be 3-4 months before the rate fully resumes. So take a gasp, homeowners behind on your mortgage, you just caught a temporary break. More »
No one plans to get canned, but in this climate it's foolish not to come up with a contingency plan if your boss decides to give you a permanent long weekend. More »
Reuters says that conditions, benefits and salaries have deteriorated at Starbucks — once celebrated in the media for its happy, loyal workforce. Apparently, disillusioned Starbucks workers are everywhere you care to look. More »
Citing a law from the 1850's, Mark is going around Florida looking for foreclosed and abandoned houses and filing paperwork to try to claim their deeds. It's called "adverse possession." More »
With college tuition and fees rapidly increasing and hovering at an average of $7,605 a year, it's becoming easier to question whether or not it's worth putting yourself in debt for the knowledge and connections. More »
Beating expectations, the US added 151,000 jobs in October, for the first time since May. Analysts had projected only a 60,000 gain. It wasn't enough to nudge the unemployment rate, however, which held at 9.6%. More »
Here's one way to make the mortgage mess work for you: According to The Wall Street Journal, the slowdown in foreclosures due to questions about paperwork, note-holders and robo-signers has allowed some homeowners to live mortgage-free for several months; some are even renting out their homes. The Journal estimates that the "stealth stimulus" gives these homeowners a "subsidy" of about $2.6 billion a month. More »
The recession may be over, but according to a new poll by the Washington Post, not only are most Americans concerned about having enough money to pay their rent or mortgage, but that number has continued to increase over the last two years. More »
There's been a lot of talk over the last few days about "quantitative easing," but if you're wondering what it is and why it matters — you're not alone. Long story short — it's a way for the Fed to create money out of thin air. More »
For much of the last decade, more and more banks had been offering checking accounts with no monthly fees or minimum balance requirements. But a new study from BankRate.com shows that this trend appears to have ended. More »
A Barbie doll dressed in a black cocktail dress, pink heels, and a sparkly pink necklace sold at auction at Christie's yesterday for $302,500. Well, perhaps it's not a Barbie doll so much as some plastic and fabric that happens to be attached to a custom-designed Cubist pink and white diamond necklace made by Australian jewelry designer Stefano Canturi. More »
When you shake your fist, screaming "They took our jobs!" You can stare at your computer rather than the day laborers standing outside Home Depot. More »
Ten days after announcing a freeze to foreclosures in all 50 states, Bank of America announced on Monday that it was time to get back to the business of foreclosing on homes in 23 of those states. More »
As mentioned here earlier this week, the current foreclosure freezes by Bank of America and others have more than a few people in limbo as they wait to either buy or sell a foreclosed property. To help these folks out, Reuters has put together a list of helpful tips for weathering the freeze. More »
Those crazy NPR Planet Money kids took the money they had left over from their failed toxic asset investment - affectionately known as "Toxie" - and put it all into the next big bubble: gold! For $419 they got one shiny gold coin. In 6 months they'll sell it, regardless of prices, and in the meantime, report on what happens to it. More »
JPMorgan & Chase had a cute name, the "Burger King Kids," for the workers with little no experience or qualifications it hired to process the reams of mortgages it plowed through at the height of the housing bubble. These walk-in hires "barely knew what a mortgage was," writes the NYT. The newbies Citigroup and GMAC/Ally Bank outsourced the work to sometimes tossed paperwork into the garbage can. More »
In spite of their nickname, "robo-signers" — those hired to process the mountain of foreclosure documents during the recent recession — are flesh and blood human beings. And like many human beings, they also know very little about mortgages and foreclosures. More »
Who says prison inmates have it tough? First came the report that a handful of cons had scored $9 million in home buyer tax credit, now we read that millions more in stimulus money was sent to our nation's incarcerated. More »
While the last couple years haven't exactly been wonderful for people in the hotel business, many travelers have been able to score cut-rate rooms as hotel operators sought to fill rooms. But now, says USA Today, it's looking like rates are back on the rise again. More »
Less than two weeks after the passing of the $30 billion small business lending bill, the Treasury Department has announced an additional $1.5 billion it will distribute to the states with the intent of seeing ten times that dollar amount ultimately injected into the economy. More »
Life in New York City has just gotten a little more expensive, as the MTA board has voted to increase fares on subways, buses and commuter trains for the third time in two years, all while cutting bus routes, train service and laying off thousands of employees. More »
In April, legislation was introduced in the House of Representatives that would require courts to recognize out-of-state notarizations. It got little notice at the time and was deemed dead-on-arrival by some. Then in the last couple weeks, GMAC, JPMorgan Chase and Bank of America announce they are freezing foreclosures in multiple states, in part because of improper notarizations. Suddenly, this bill passes through the Senate without any debate. It was enough to make the White House say "hmmmmm" when it arrived at the Oval Office for the President's signature. More »
There is a really fun legal gray area when it comes to foreclosed properties. Laws about how to handle the process are different around the country, and reports are popping up about banks cutting the locks off the doors of homes where people are still in residence, gerbils being confiscated — and let's not forget the hapless Canadian tourists whose delicious beverages went missing after the locks were changed on their vacation rental. More »
It's generally been considered a sign of good things on the horizon when you hear about an increase in the number of temp jobs. These non-committal hires are usually a sign of employers tip-toeing back into a period of stability or even growth. That's why the latest Labor Department numbers have some prognosticators scratching their heads. More »
Some San Diegans who declined to witness the Chargers defile the poor, defenseless Arizona Cardinals in person flocked to sports bars that snagged illegal webcasts of the game. The NFL, never happy to see its blackout policy for non-sellouts violated, sent in the gumshoes to sniff out the offending bars and make them pay. More »
Hot on the heels of foreclosure and eviction freezes by GMAC/Ally, JPMorgan Chase and Bank of America, the Attorney General for the state of Texas has become the latest AG to request that loan servicing companies put a temporary halt to foreclosures. More »
Given the team's 1-3 start to the season, Cleveland Browns fans probably need a drink or two before settling in for a game at Browns Stadium. But that proposition just got a little pricier for those cheapskates who thought they could save a little money (and gas) by walking to the tailgate lot. More »
Bank tellers may handle your transactions with smiles, but don't think there's not a lot of judgment going on behind those glazed-over looks. They see suckers come and go all day, and watch people make the same ill-informed mistakes again and again. More »
Earlier this summer, we wrote about the Postal Service's proposal to stay even partially solvent by raising rates on first-class mail and small parcels. Alas, the USPS will now have to go to Plan B (which we're pretty sure involves selling lemonade and washing cars) to increase revenue, after regulators slammed down the hammer of denial on the rate hike. More »
Whenever the money level in my Scrooge McDuck-style money bin dips below levels that are safe for diving, I have to send off the servants to restock it with assorted gold bars and coins. But now I'll get to fire them because Gold to Go has announced they're bringing their gold-dispensing ATMs to our great nation. More »
Inflation is good, at the right time, and in moderate amounts. Like adding just a smidge during a recession when there's a lot of people in debt. Knowing that prices will rise, some consumers and businesses are prodded to crack open their pocketbooks. The value of debts drop, easing the burden on strapped borrowers. Having used up a lot of options already, the Fed could slightly raise its inflation target and let prices slowly rise over the next few years, but they're unlikely to announce anything remotely close to that in their meeting this week. Namely because people really really really hate inflation. Why is that? More »
Earlier today, the President Obama put his John Hancock on a $30 billion small business lending bill intended to spur economic growth among, well... small businesses. More »
Some economist eggheads might believe that the recession is over, but try telling that to the zombies of Harrisburg, PA, who had to move their march of the undead after the city tried to squeeze them for some fees. More »
Although the recession officially ended more than a year ago, a significant chunk of the country is still caught in an economic tailspin with no end in sight. More »
The Consumer Financial Protection Agency has gotten one step closer to a reality, with Harvard law professor Elizabeth Warren being named a special advisor to President Obama, focusing on the agency's creation. More »
Conventional wisdom says small businesses are the backbone of the economy, but a new study counters that mom-and-pop businesses are an economic cancer instead. More »
Americans only bought just under 1 million new cars last month, which is the weakest August since the 993,100 sold in 1983. This figure looks extra weak in comparison to last August, when the Cash for Clunkers program was in full force. Now, the business is quite different. More »
Imagine if you will that you are standing before four doorways, each of which could magically improve one facet of your life — wealth, waistline, IQ, youth. You can only go through one doorway; which one do you choose? More »
The last thing anyone needs when they're out of work is to worry about the safety of the personal information they put on a job application. But the U.S. Attorney in Ohio has indicted a woman on allegations that she used this sensitive info to falsely obtain credit cards and run up a $115,000 tab. More »
The longer prospective home buyers continue to hold out, the better things get for them. The National Association of Realtors revealed some gloomy numbers for homeowners: July sales of occupied homes dropped 27 percent, marking the biggest month-to-month decline in the four decades in which the organization has tracked the figures. More »
The NYT says using a house to fund a comfortable retirement, pay for the education of your children, and send you on a cruise every winter was a purely 20th century phenomenon. And, like that century, the party is now over. More »
I grew up in the Philadelphia area and I can't remember a time when the city wasn't described as "cash-strapped" by the local media. But I'd never imagine Philly's financial follies would be so dire that it would begin requiring business licenses for businesses that don't really exist. More »
Apparently, people haven't been spending their unemployment checks at the mall in recent months, because a large number of prominent retail clothing and food chains — from Abercrombie & Fitch to Winn-Dixie — are being forced to shutter stores in the wake of the economic downturn. More »
It's always tantalizing to fantasize about a career change, but only so many people can be astronauts or Yankees outfielders, so it's more reasonable to think about going back to school and getting a more reasonable job. More »
New items on the back-to-school lists this year include cleaning spray, baby wipes, and cotton balls. It's not for making a diorama or some kind of cheap puppet. Rather, with budgets slashed all over, schools have had to resort to asking the kids to pick up basic cleaning supplies for the school along with their usual TrapperKeepers and notebooks. More »
Even though the American Gaming Association recently stated that gambling revenues were down 5.5% last year, a growing number of state and city governments are looking at casinos and gambling as a way to spur economic growth during this not exactly golden age. More »
The Fed voted Tuesday to reinvest expiring mortgage-backed securities by putting the money into longer-term Treasuries. That, and the decision to keep rates at 0 to 1/4 percent, should keep mortgage rates low. Here's the full statement following their coffee klatsch: More »
Over at the New York Times, they have a profile of a woman in Portland, OR, who has spent the last three years with only 100 items to her name. In addition to living with less clutter, she and her husband have also managed to erase $30,000 in debt. More »
Jobless claims went up 19,000 to 479,000 at the end of last month, higher than expected, and the most since April. It signals that as the recovery sputters, employers are continuing to cut payrolls. More »
The NYT has a profile of a woman who has passed the 99 weeks of unemployment benefits and is now essentially homeless, living in a motel paid for with charity from friends. In 2008 she had a good job and was going to business school. Now she's on food stamps and making ramen in a motel ice bucket. More »
Last week, we asked you about your most expensive habits. And while many readers responded with things like smoking, coffee or food, a number of responses — like video games, photography or razor collecting — could also fall under the heading of "hobbies." More »
Times are tough everywhere. Which means desperate people will consider taking jobs, like stripping or performing nude on a web cam, they wouldn't otherwise have considered. But the government in the UK doesn't want to encourage its citizens to find these types of sexy jobs and has banned a certain class of employers from advertising at tax-funded employment offices. More »
A couple thought they were snagging a $97,606 foreclosure fixer upper at a courthouse sale, only to find out months later they had actually bought its worthless second mortgage. The original was in arrears, and now the house would be sold at another courthouse auction. More »
Want to build the home of your dreams and can't find enough land for it? Try moving to Tampa. The area has 27,923 building lots, enough to keep homebuilders busy for nine years. That's assuming anyone actually wants to build something, of course. More »
The guy who offered to set his car on fire in exchange for "loanations" (his word—he says he's going to pay back all donations) managed to raise enough money to prevent the foreclosure sale of his house yesterday. Below is a video of him handing over a check for $21,000. The only problem is, now he's saying he might not burn the car. More »
John admits on his blog that he's responsible for falling six months behind on his mortgage. But once he got over his divorce and losing his adopted son and started trying to make things right, he ended up in loan modification limbo at HSBC. The bank never moved forward on any modification, and now he has to pay $21,638.02 today if he wants to keep his house. Logically, he's offering to burn his car and post the video online in return for donations. More »
The bill to extend and restore unemployment benefits to out of work Americans now only has to make its way to the White House after Congress passed the legislation by a vote of 272 to 152. More »
Sure, it's maybe a bit morbid to think about buying your cemetery plot now, when you're so young and healthy and, you know, breathing. But burial expenses are, well, expensive; that's why you see all those ads for "life insurance" advertised to old people on daytime TV. So if you're looking now to save a bit of cash for you or your loved ones' eternal resting places, you might want to consider snapping up your patch of ground now. More »
Remember the good old days when Washington Mutual (or WaMu, if you like your bank to sound like a killer whale) still existed? Well, there are about 9.8 million souvenirs of its existence still waiting to be disbursed in the form of unclaimed deposits. More »
It's like something out of a whacky comedy movie — Homeless man breaks into bar that recently shut down, decides to pretend he's the new owner and starts selling drinks. But this wasn't some laugher starring the hilarious Steve Guttenberg; it's exactly what authorities in a small Northern California town have arrested a man for doing. More »
Often, one of the perks of living in a dorm at college is the housekeeping, which dumps the trash, hoses down the bathroom and refills depleted toilet paper rolls in the stalls. But at Texas A&M, students in dorms may soon be responsible for having to supply their own TP. More »
After months of debate and compromises that left some members of both parties less than thrilled, President Obama signed the financial reform bill into law this morning, which means that all problems with all banking is fixed forever... right? More »
The bill that will restore and extend unemployment benefits to millions of out of work Americans just got one step closer to reality this afternoon, with the Senate voting 60-40 to end the stalemate that had logjammed the legislation from being voted on. More »
Remember the Downtown Dollars that Ardmore, PA sold to its citizens this year? Sara Lepro at American Banker looked at that and other "homegrown currency" experiments happening across the country, which are intended to stimulate the local economy and take advantage of "a growing 'localism' movement." More »
Online news site The Daily Beast is apparently tired of this whole "floundering economy" thing, so it got more than a dozen economists and historians to come together and issue a manifesto yesterday calling on the U.S. government to "reboot America." By the end of the day, the number of experts supporting the manifesto increased to more than 40. They argue that the government has to help return lost purchasing power to the unemployed and must use tax cuts and stimulus to boost overall demand, or we'll never make it out of this slump. More »
Who would have thought that people who gather at NYC's public parks to sell their paintings and photography would mind being forced into a designated area? More »
The new trend in government cost-cutting involves disbanding the police department, says the WSJ. The paper has an article about Maywood, a tiny city southeast of Los Angeles. The city lost its insurance after its carrier decided to cancel its policy "because of the $21 million in legal expenses and judgments against the city stemming from the conduct of its police department." This means that Maywood can't employ anyone. More »
If you received a foreclosure notice this year, you're not alone. According to tracking firm RealtyTrac, 1.6 million properties received a foreclosure filing — defined as default notices, auction sale notices and bank repossessions — during the first half of 2010. The good news: that number is down 5% from the previous six months. The bad? It's up 8% from the first half of last year. And RealtyTrac doesn't see any relief coming, as a "massive number of distressed properties and underwater loans continues to sit just below the surface." More »
Here's a tip to anyone looking to squat in a foreclosed home — People probably won't believe you if you tell them you purchased the property from Yahweh (aka God, aka Big Man in the Sky). It's a lesson a Montana man learned this week after being convicted of not only illegally living in a home that wasn't his, but also trying to use it as collateral for a loan. More »
Illinois credit rating sucks, which is unfortunate for the Sucker State, because it needs to borrow millions of dollars to pay its bills. This means that the state is paying a premium for the loans, which are going to be used to improve roads, bridges and schools. As a product of Illinois' public schools, I can honestly say that the $900 million in new bonds it is issuing will not be enough. Whether this is because we are too poorly educated to figure out how much money is actually needed, or because it really isn't, no one can say. More »
Are you a fancy person? Then you have a 1 in 7 chance of defaulting on your mortgage, says a new study of data compiled for the New York Times. Those of you with mortgages of less than a million dollars only have a 1 in 12 chance of defaulting, the paper says. More »
Do you find yourself feeling too at peace with baggage fees, missed connections and seemingly inane delays at airports? Don't worry, here are 20 more reasons to be irate at airlines! More »
In order to qualify for a "short sale," in which the lender agrees for the house to be sold for less than the remaining amount owed and takes a loss, the lender sometimes requires the homeowner to be several months delinquent on their mortgage payments. But while getting out of a house you can't afford can be a good idea, bear in mind that the delinquency will stain your credit report. More »
Rates on 30-year mortgages fell to 4.57% this week amid falling new home sales and increasing joblessness. It's the third straight week that mortgage rates have dropped, and they're the lowest since Freddie Mac started keeping track in the 70's. More »
Know someone who's hiring? It might be worth $1,000 to you. An unemployed woman in Texas is going to new lengths, offering the cash as a reward for finding her a steady job. More »
The much-watched Department of Labor's jobs report came out today, and while it ain't pretty, it ain't ugly enough to make you stay home from the dance either. More »
Happy Fourth of July weekend! To help you celebrate Independence Day, which includes independence from the government dole, a Senate filibuster has successfully prevented unemployment benefits from being extended for 1.3 million out of work citizens. More »
Back in 2007, we were all living in our 8-bedroom homes paid for with adjustable rate mortgages. And AIG's Financial Products unit was selling credit-default swaps like there was no tomorrow. Then we all woke up in our parents' basements with no job and AIG was owned by the taxpayers. But Joseph Cassano, the former head of said Financial Products division, thinks he could have done a better job of bailing out the banking industry he helped lead to ruin. More »
Do you look at your baby and say, "I love him/her so much, but why can't he/she be more fashionable?" Well, the braintrust at Pampers has come to your rescue with a new line of colorful poop-and-pee-absorbers designed by Cynthia Rowley. More »
When Paul Simon sang "She got diamonds on the soles of her shoes," we don't think he was daring anyone to actually make said shoes. But jeweler House of Borgezie has gotten pretty close, slapping over 2,000 diamonds on a pair of stiletto heels and charging $155,000 a pair. More »
Paul Krugman, economist and NYT columnist thinks so, and suggests that now is not the time to radically cut back in spending. He says that recent speeches coming out of Europe seem to be taken from the Hoover playbook, and he's worried. More »
Following an L.A. Times report that revealed the California welfare debit card program allows benefits recipients to withdraw cash at ATMs at casinos, state officials disclosed that over $1.8 million in taxpayer cash had been withdrawn on the gaming floors of casinos in just the last eight months. More »
The Commerce Department has released figures that show that new home sales have dropped to a record low — down 33% from April. The drop isn't unexpected, but it does show to what extent the market was being propped up by the tax credit for new home buyers. More »
Health care reform has been one of the biggest hot-button topic for quite some time and it looks to only get hotter as both sides make their arguments on the White House's plan for national health care. Leaving the pros and cons of the plan to the side for the moment, we just want to know how our readers are fixed for health insurance. More »
Because we all know that the two things the world lacks these days are (1) advertisements and (2) car accidents, a California State Assemblyman has put forth a bill we kill both birds with the same 23-car pileup on the freeway by replacing our boring, non-revenue-generating license plates with fancy electronic ones complete with advertising. More »
A couple of weeks back, we asked what you would do if you stumbled upon a bag containing $18,000 in cash with no signs of the owner's ID. Today, CNN took a camera out on the street to ask folks what they would do if they suddenly had $20,000 to spend, no strings attached. More »
When the economy began circling the drain a couple of years back, everything began getting smaller, from the cars we drive to the number of banks we have to choose from. And according to the Census Bureau, even our homes were nailed by the recession shrink ray. More »
If you're going to live in a house that doesn't belong to you, why not make it a luxury home? After all, there are more than a few of them sitting empty these days. And that's exactly what a woman in Washington state had been doing, at least until she got caught. More »
Now, many of you don't know that I have a degree in architecture. So maybe it's only my keen eye that can discern the minute tectonic details that would make this particular McMansion Lite slightly less expensive than another one. Can your novice senses detect the reason? More »
Federal Housing Finance Agency, which regulates Freddie Mac and Fannie Mae, announced today that the government-sponsored mortgage purchasers would delist themselves from the NYSE. More »
There are a lot of empty buildings in the Detroit area, but the beleaguered city's mayor announced today that he's found the perfect vacant space to house HQs for both the city's police and fire departments — the old MGM Grand Detroit casino. More »
Remember 1997? It was my last year of college so I don't have too solid a grasp on it, but I do remember being inundated with songs by the Spice Girls and Third Eye Blind. And apparently it was the last time that the demand for mortgages was as low as it is right now. More »
When you decide to go with a hip-hop moniker like Chamillionaire, it's probably not the best PR move to let one of your houses go into foreclosure. But, says the rapper, it wasn't because he was having money problems. Instead, he handed the manse back to the bank because he just didn't feel like paying the mortgage on a house he never lived in. More »
If you're a harried homeowner buried in debt and have no chance of covering your mortgage, one option is just to stop paying your mortgage and save up as you wait for the gears to slowly grind toward your eviction. More »
The WSJ says that the savings rate grew and consumption was flat in April. Consumers are also more optimistic about the state of the economy, the paper said. More »
In not-so-depressing news about the economy, the Commerce Dept. announced this morning that sales of new homes in April had jumped up 14.8% from March — the highest level in nearly two years. More »
Bloomberg is reporting that the Federal Reserve will probably transfer record earnings exceeding $70 billion into the US Treasury. The income is coming from assets that include mortgage-backed securities, says the Congressional Budget Office. More »
A recent report from the Pew Charitable Trusts tallies up each US household's share in the economic collapse. Your household's share? $104,350. That includes lost income, government bailouts, and both reduced home values and reduced stock values. More »
Influencing people to buy things in times of economic hardship ain't easy, but the video game industry has figured out how to lure reluctant shoppers: Freebies! By offering free versions of their games, video game marketers are drawing in users from unlikely demographic areas, namely, women and the elderly. More »
The one thing the recession has taught me is that if you've got money, might as well burn it! And what better way to treat yourself to a little bit of luxury than with a $190,000 solid gold, diamond encrusted iPad? More »
Like a tempered blade, America has passed through the fires of recession and emerged stronger and sharper, albeit with some pieces of itself permanently oxidized. What is on our minds? How do we feel and how are we acting in the new economy? Researchers at Communispace surveyed more than 1,200 U.S. consumers, spoke with 694 online community members, and came up with some very interesting results and insights. Here they are, in chunky infographic form: More »
It's a line of work that begs to be turned into George Clooney's next existential Oscar bait film — a high-end repo man who swiped the toys of the wealthy to repay debt. CNN profiles Ken Cage, whose job it is to nab Gulfstreams, Cessnas, yachts and what have you, with the aid of former pro wrestler Randy Craft, fated to be played in a movie by Mickey Rourke. More »
Consumer Reports is out with the latest edition of its economic-health tracker, the CR Index, and the news is generally positive, with gains in jobs and consumer spending, and declines in stress. But that doesn't mean it's time to break out the bubbly: “We are seeing modest improvements across our indices since April, which demonstrate that consumers are starting the long slog out of this historic recession,” said Ed Farrell, a director of the Consumer Reports National Research Center. “But a full recovery will require a substantial period of growth for consumer confidence to fully take hold.” More »
The New York subway is facing a budget crisis that is taking a toll on services. Deep cuts that will eliminate two trains and several bus routes have resulted in a pressing need for new signage. What will all these new signs cost? $800,000. More »
This is probably a little too late for those of you who will be graduating from college in the coming weeks, but might be quite helpful to anyone getting their high school diploma soon. A new study lists the 10 college majors that will net you the most income right away. And if you thought your thesis on Emily Dickinson was going to translate into paycheck poetry, you were mistaken. More »
Chicken producers like Tyson and Pilgrim's Pride slashed production in 2008 as feed prices went up and consumer demand for meat fell — but now as the economy recovers the demand is going up — along with prices. More »
Treasury Secretary Tim Geithner will meet with federal regulators and top officials from the NYSE and other exchanges to dicuss whatever the hell happened last Thursday that caused the stock market to completely freak out. More »
While bailed-out banks and car companies are making headway toward repaying their loans in full, it's a completely different story for mortgage investment firm Fannie Mae. After posting a quarterly loss of $11.5 billion, Fannie Mae has announced it will need another $8.4 billion from its federal overseers government aid. More »
Good news for adults! Employment has jumped as employers have added almost 290,000 jobs! However that sullen, entitled teenager serving you your fries at the drive-thru window might just be a little nicer this summer out of gratitude for having a job: a new report shows that unemployment among 16- to 24-year-olds has doubled from three years ago, to 20 percent. More »
Bank of America took a little kick in the shins today as Countrywide Financial Corp, the mortgage lender they acquired in 2008 as it suck into the quicksand, has agreed to a $624 million settlement of a class-action lawsuit accusing it of misleading investors about its lending practices. More »
In the world of gambling, one axiom holds true — In the end, the casino always wins. But a new report from the American Gaming Association says that, due to the current not-so-great status of the economy, the casino isn't winning as much as it was before. More »
An amendment to the financial overhaul bill banning the use of taxpayer funds for bank bailouts has been agreed upon in the Senate, says the LA Times. More »
"Darnit, where was that mortgage modification paper? I knew I put it somewhere. Oh well, let's just foreclose on these people's house. STAMP! Whoo, that was tough. Time to treat myself to a Diet Coke." That's an imaginative reenactment at what's going on inside the mortgage departments of the biggest banks in America: total disorganization, the right hand not knowing what the left is doing, a bureaucratic and document-strewn nightmare that can swallow up people's homes right from under them. More »
Now we finally understand the secrets of the pharoahs: a bunch of angry people in Stony Ridge, Ohio have sealed up a home with the homeowner inside, with his permission, leaving only a golf ball-sized hole in the front door. The man, Keith Sadler, says he fell behind last year after paying on his mortgage for 12 years, and that his bank promised to work with him but instead proceeded with foreclosure. More »
Back in the early days of the recession, circa 2008, people were nervous about the future, and decided to start saving more of their money instead of just spending it. That brought personal savings rates up to over 5% by last year. But after hearing for months that the recession is over, consumers are apparently starting to believe it — especially when numbers show the economy growing by 3.2%. Savings rates are down to about 2.7%, and consumer spending is up by 0.6% as of March. Unfortunately, incomes are only up 0.3%, so plenty of people may be helping the economy grow by spending more than they earn. Thanks, guys! More »
The kids over at Consumer Reports are working on their August kitchen-remodeling story and are finding that there is less emphasis on remodeling homes with ROI in mind. More »
Ah, nothing like convenience! Irish natives thirsty for a drink and some legal work can now head to a one-stop shop for both pints and employment: O'Casey's Restaurant and Irish pub in New York has converted its second floor into an unemployment center to help job-seekers find work. More »
Buying a home is a trying and complicated process. It often strains relationships and puts an enormous amount of stress on buyers physically, mentally and financially. That's why the folks at the Boston Globe have put together this list of 10 things to keep in mind as you weather the home-buying storm. More »
Last August, a homeowner in Massapequa, NY — the town that gave us the Baldwin brothers, Jerry Seinfeld, Steve Guttenberg, Marvin Hamlisch and Joey Buttafuoco — began selling raffle tickets at $50 a pop for a chance to win his 5-bedroom, 4-bath house. Eight months and 10,000 raffle tickets later, he still hasn't given the house away. More »
So many things can go wrong on prom night — ill-fitting tuxes, zits, wilted flowers, your date running off with someone else — but a group of high school students in Oklahoma had their evening spoiled in a way that is all too indicative of the times we live in: They watched as the limo they'd rented was repossessed. More »
It makes sense to reward those who perform well at their jobs, and withhold perks from those who don’t — but it seems Abercrombie & Fitch is a little bit confused on that last point. The company, mired in its “aspirational” $90 prices for cargo pants and its ads featuring gamboling half-dressed models, netted only $254,000 last year. So what’d they do? Take away the CEOs exorbitant travel budget. And then pay him more money to not spend money. More »
Your average Cub fan will, of course, be familiar with the Wrigley Rooftop that sports the "Eamus Catuli" sign, but it seems the well-known rooftop is now in foreclosure. More »
Forget that boring Fortune 500 list, with its Walmarts, oil companies and lack of vampires. The better list was released this week by Forbes, the one that not only includes vampires, but puts a bloodsucker squarely on top of the list. More »
Times are tough everywhere, it seems. Even behind the gilded gates of Hollywood estates, the tax man cometh and the shadow of foreclosure looms large. Now, two of Tinseltown's higher-profile oddballs, Pamela Anderson and Nicolas Cage, are both feeling the sting of the economic downturn. More »
The USPS is an independent agency of the US government that is self-sufficient and has not received tax dollars since the early '80s, but according to a new report from the Government Accountability Office (GAO), taxpayers will be stuck with a bailout if something isn't done about the recent shortfalls. More »
Remember in Sept. 2008, when Washington Mutual went from being the sixth-largest bank in the U.S. to the biggest bank failure in U.S. history? Well, newly released documents show just how reckless and money-grubbing WaMu was in its final months — and how some employees were reaping huge rewards as the bank sunk into the quicksand. More »
Need a job? One green shoot of the economic recovery is the hiring glut going on over at the R/GA digital advertising agency, with 230 jobs open. That's on top of the 130 they've already hired this year. But I thought advertising was dead, or at least severely atrophied? More »
Looking for a job? Then this might be a bit of good news — Home Depot is so hopeful about the economic rebound that they're adding new in-store positions for the first time in four years. More »
With the economy still creeping along on its belly, many Americans are facing mounting piles of debt. And for an increasing number of people — whether through mismanagement of their finances, loss of income or change in employment status — creditors are moving to garnish their wages to recoup their money. More »
Someone should tell those cats that have been taking over abandoned homes that there are also plenty of empty offices waiting for them to frolick in — A new report says that there office vacancies in the first quarter of 2010 reached its highest level since Kurt Cobain was still alive. More »
$182.3 billion is a hefty tab to pay off, but the CEO of AIG says he feels "pretty comfortable" that his company will be able to get that all back to the government between now and the Sept. 2013 deadline. More »
Last week's poll on tipping the pizza delivery guy certainly riled a lot of feathers, with over 300 comments on the topic and more than 12,000 votes tallied. It's also brought up some good questions about tipping from Consumerist readers, like this one from Chad, who has just been introduced to mandatory full-service gas stations in New Jersey. More »
Once again, the private sector continued to shed jobs this month. But in an attempt to look on the not-so-bleak side of things, it was the smallest monthly decline in over two years. More »
As the slumbering economy forces more people to think of ways to save money, the basic costs of living continue to increase. Case in point: Con Edison is set to jack up rates for electricity to millions of customers in the New York City metro area. More »
Hope you weren't planning on buying popcorn at the movies this weekend, because you might not have any cash left after you pay for your higher-priced tickets. More »
Perhaps in a move to lose in the first round of Consumerist's Worst Company In America tournament, Bank of America announced today that it plans to offer around $3 billion in loan forgiveness to about 45,000 homeowners. More »
Fans of high-end retail shopping may be in for some sadness. The CEO of Saks & Company says they are definitely closing two Saks Fifth Avenue stores in Portland, OR, and that other underperforming stores may soon be on the chopping block. More »
In news certain to please the Schrute family of Scranton, PA., Shell and youngster biofuel company Virent just announced they've started up production at their plant that can convert beet sugar into gasoline and gasoline blend components. More »
The NY Post says that they've found a correlation between economic growth and same store sales at Walmart. Their theory is that as the economy improves, people run away from the big blue box. More »
We keep hearing that the recession is over, but every new consumer survey seems to confirm one thing: With unemployment rates high and home values low, most consumers aren't exactly in a rush to open their wallets again. And according to one new survey, many of you are even embarrassed about the way you used to spend, comparing those days to "some of the crazy things you did in high school or college." More »
Ben Bernanke doesn't like systemic risk! Shocking, we know. In a speech he gave in Orlando, Florida, the Chairman expressed outrage at the bailouts of too big to fail companies and said shareholders should not be sheltered from losses. More »
In a narrow vote, the US House of Representatives signed off on the Senate's national health care plan. The bill will now move onto the White House to, presumably, be signed by President Obama. More »
Donating a kidney or part of a liver is a risky proposition, even when you're giving the donation to a loved one or family member. But a new study asks whether or not people would be more willing to part with an organ if tens, or even hundreds, of thousands of dollars were offered. More »
Several states and cities around the country consider taking part in the latest trend of levying a "soda tax" on high-calorie beverages. But in New York state, the measure looks certain to die a quiet death in the state house, while the folks in Philadelphia are looking at a loophole that could render the whole "combatting obesity" thing nonexistent. More »
In a move designed to make sure their neighbors throw extra eggs at their houses, a handful of former AIG employees are threatening to sue because they haven't received bonuses as quickly as they had expected. More »
Once again looking for anything even vaguely resembling a silver lining in these craptastic economic times, a new report shows that, while foreclosures did increase overall in February, they only increased a little bit... relatively speaking. More »
Sudden unemployment can really help you think creatively. The OC Register has a profile of a guy who lost his condo after being laid off from his 6-figure corporate development job — and is now living out of his leased BMW and a storage unit — and using his rewards points to survive. More »
In these tough times, homeowners with difficulties paying their mortgage dread receiving that letter from the bank informing them that their loan is in default. Except for Consumerist reader Ryan, who recently got some certified mail from CitiMortgages telling him his home was at risk of foreclosure, unless he immediately forked over $0.00 More »
If you're looking for any sort of sign that the economy might not be as ill-fated as it occasionally appears, here's something for you. A new study shows that, while the job market may be flat, the number of millionaires in the U.S. is on the rise, with the number of households worth at least $1 million up 16% from last year. More »
The latest survey on employers' hiring patterns is a good news/bad news affair. On the up side, business owners don't really plan on laying more people off in the next few months. On the down side, they also don't expect to be hiring all that many people. More »
At a speech today in Philadelphia, President Barack Obama set his sights on the insurance industry as the main stumbling block to the passing of a National Health Care plan, saying they would rather not insure the people who need insurance the most. More »
For U.S. troops returning from Iraq and Afghanistan, they're coming home to a depressed job market and double-digit unemployment. That's why a little Washington-based software company called Microsoft is ponying up $2 million in cash and $6 million in software to help these new civilians find jobs. More »
While some indicators seem to say that the economy is turning around or at least not getting worse, there are still millions of homes out there that are at risk of foreclosure. And since so many of those outstanding mortgages were based on grossly inflated home prices, the odds of finding a buyer that will pay off the mortgage are slim. However, a new program about to take effect in April will encourage lenders to accept less than they're owed. More »
Unemployed? If you're looking for something to get you out of the house, the Census is hiring and apparently they're really enjoying the sudden influx of lawyers and other professionals to choose from, says the Washington Post. More »
This graph shows employment declines at the same chronological point during America's last six recessions. Guess which one represents the current recession. Go ahead, guess. [New York Times] (Thanks, Dan!)
It's a sign of just how bad it's been in recent times when it's taken as good news that the national unemployment rate is still 9.7%, which is what the latest Labor Dept. figures show for February. Also on the silver-lining front, while a net total of 36,000 jobs were lost last month, that's 14,000 less than had been expected. More »
We try not to be too paranoid about the cleanliness of things we purchase. We'll purchase used books, buy vintage clothing, drive pre-owned cars. But the "Ick Factor," as it's known in the world of science, jumps off the charts when it comes to used undies. But that's exactly what NBC claims to have discovered at several retail stores. More »
As if the poor fellas at Toyota didn't have enough on their hands with this massive recall, hearings in Washington and cars that just won't get fixed. Now the car company is giving away $250 million to workers at a soon-to-close plant in California. More »
Here's some not-so-bleak news to brighten your day. A new study shows that only 20,000 Americans lost their job in the private sector in the last month. That's down a whopping 67% from January's numbers. And some are hoping this is just the start of an upward trend. More »
A job fair in the South Carolina vacation town of Myrtle Beach was canceled this year because only 30% of the companies usually attending the expo had planned to return. But before you think this is a bleak sign that the recession is getting worse, there's this fact: 70% of these companies say they are hiring. So why scrap the job fair if almost everyone is looking for employees? More »
The United States Postal Service is continuing its long slide into suckage according to a new report delivered by Postmaster General John E. Potter this morning. People sent far less mail last year ("more than double any previous decline," says the Washington Post) and labor costs continue to rise, which helped the USPS lose $3.8 billion in 2009. More »
According to a survey of human resource folks, 60% of them say they are now running credit checks on potential hires. But there's a new movement in several states — and one bill stuck in Congress — to make it illegal for a company to run such checks, because detractors claim they are hurting people from getting jobs during the recession. More »
Filing for unemployment benefits can be an exhausting bureaucratic mess, but it shouldn't cost you hundreds of dollars. In theory. According to TV station KOB, though, a New Mexico man spent so many hours on hold with the unemployment office that he ran up a $700 cell phone bill. More »
It doesn't take a rocket scientist to know that the current real estate market is not exactly a seller's paradise. Nevertheless, there are still a lot of people who need to unload their homes now. The early risers over at Good Morning America put together this video highlighting 5 steps you can take to help your property stand out. More »
In an effort to de-taint its public image (and cut long-term overhead costs), mega-retailer Walmart has been going "green" for over a decade with eco-friendly changes to its operation. And yesterday the company announced it is asking its suppliers to help them in their latest initiative to reduce greenhouse gas emissions by 20 million metric tons in the next five years. More »
The showdown over skyrocketing insurance rates in California got even nastier yesterday. The state's Attorney General's office announced that it has subpoenaed financial documents and launched an investigation into allegations of illegal premium hikes and wrongfully denied claims by seven separate health insurance providers. More »
If there's one thing alcohol distillers and distributors know about it's repititive, compulsive behavior (some might say they depend on it). And a new report suggests that Big Booze's current addiction to discounts and coupons may end up doing long-term damage to the industry. More »
Auto decal makers and window-tinters of the world are in mourning this afternoon, following an announcement from General Motors that — after several months of trying to unload their Hummer brand of gas-guzzlers on the Sichuan Tengzhong Heavy Industrial Machines Company — they're stopping production of the controversial phallic stand-ins. More »
Every time the topic of national health care comes up, the prophets of doom put on their black cloaks and start their chants of "Big Brother," "socialism" and "move to Finland," painting a picture of a bleak, Orwellian future where baritone-voiced Death Panels decide your fate on a punch card that then gets sent through a pneumatic tube to the waiting Euthanasia Agent. But our smarter, better-looking kin over at Consumer Reports claim it's not all that bleak. More »
Last night, the selfless executives of California insurance behemoth Anthem Blue Cross (and parent company WellPoint) took time away from their usual Tuesday evenings volunteering at the soup kitchen to appear before those pesky members of the State's government who just won't stop harping about Anthem's plans to raise rates on individual policy holders as much as 39%. Anthem's answer: Let's stop all this nonsense and just raise rates already! More »
New York is a big city with a lot of people, each of whom seems to get a parade of his or her own at some point during the year (usually the day I need to get across town in a hurry). But the NYPD has just thrown a dagger into the heart of this float-loving metropolis with their announcement that all parades — yes, even the Macy's Thanksgiving Day thingy — will now be 25% shorter. More »
Sales of new single-family homes in Jan '10 fell 11% to 309,000 from 348,000, according to a new Census Bureau report. In Jan '09 they were 329,000. The prognosticators expected 325,000, so this new data should put a damper on a few markets. [Bloomberg]
After hearing Tuesday's news that — only a year after an unprecedented federal bailout of the banking industry — Wall Street banks had rewarded their executives with over $20 billion in bonuses in 2009, we did a quick look around to see what else is worth that much cheddar. More »
In these tough times, it's easy to forget about the struggling bankers out there as you dodge their SUVs on your walk to the unemployment office. So it's a good thing they have someone looking out for their financial interests — themselves. More »
The Federal Insurance Deposit Corporation announced today that it had added 450 more banks to its troubled bank list. The list is secret, because announcing that a bank is in trouble is a good way to kill it for good. More »
The unemployment rate may be near 10%, but what about those who would do more work if they had the chance? Yes, the underemployment rate in this country, which adds to the unemployment count those who work part-time but want to work full time is nearly 20%, according to a Gallup phone poll of 19,800 American adults. Let's do our own poll. What's your work situation? Would you work more hours if they were available? More »
If you know 5 people behind on their mortgage payments, 4 of them are going to end up losing their homes, according to a new study released by John Burns Real Estate Consulting. More »
You might not know it because you're too busy looking for a job, but apparently the worst of the recession is behind us. At least according to California Governor Arnold Schwarzenegger. More »
After several months of waiting (during which, banks have had plenty of time to jack up your interest rates and cut your credit limits), the Credit CARD Act of 2009 has finally kicked in. If you haven't been following the news, here's a quick run-down of what's changed and what hasn't. More »
Is it a good sign or a bad one for the American economy if Walmart's sales are down nationwide? Does it mean that the affluent are back on their feet and no longer forced to shop downscale, or that none of us has any money at all? More »
With their sales sinking as they deal with the massive recall of 8 million vehicles, Toyota announced today that they are trimming back production at two U.S. factories in an effort to avoid an overstock of unsold automobiles. More »
Looks like Goldman turned the Parthenon into a gunpowder magazine for a second time; Greece's recently revealed debt crisis is rattling the world economy and familiar culprits are at play: Wall Street banks, off-the books loans, derivatives, and other occult financial instruments. I guess we blame the consumer on this one too? More »
In case you hadn't noticed, these aren't the brightest economic times in U.S. history. Perhaps you were distracted by the guys repossessing your car. And a new Reuters/University of Michigan survey of consumer sentiment shows that y'all aren't expecting the USS Recession to turn around anytime in the immediate future. More »
The US economy expanded 5.7% in the fourth quarter of 2009, making it the second straight quarter of growth, and the fastest in six years. However, it's important to remember that for 2009 overall, real GDP shrank 2.4%, the largest decrease since 1946. So, it's a gain for sure, but starting from a very low place and there's a long way to go. Like jobs. Some jobs would be nice. [Bloomberg]
So apparently apartment vacancies were up to 8% in the last quarter, which is weird because one would assume that people getting tossed from their foreclosed houses would be renting. Marketplace has some thoughts on the problem. More »
As we recover from the Great Recession (tm), unemployment may go down, but something will have changed. Economic conditions have accelerated the trend toward what BusinessWeek calls the "disposable worker." Americans' concept of a full-time job—one that includes health and retirement benefits and a measure of security—will need to change in the coming years. More »
The good news: the national unemployment rate hasn't gone above 10%. The bad news: it's because hundreds of thousands of people are giving up hope and dropping out of the labor force entirely. The percentage of Americans taking part in the labor force is the lowest it's been since the mid-'80s, and over 900,000 people are no longer looking for work because they don't think any is available. More »
Goldamn Sachs gave out more in bonuses than it earned in income last year, according to a lawsuit filed by a pension plan. The suit says that Goldman's revenue was inflated by government bailouts, yet it continued to pay out 50% of revenue as bonuses. [Reuters]
When the world goes into an economic downturn, it turns to chocolate. According to a report from London market research firm Mintel, chocolate sales rose in several countries, especially in China (18 percent) and the Ukraine (12 percent), as well as a more modest 2.6 percent in the U.S. More »
The canaille likes to bitch that big banks haven't been punished enough, so why not put your money where your mouth is? That's the premise behind "Move Your Money" which encourages everyone to withdraw their savings from the pockets of the pimps of Wall Street and redeposit with well-rated community banks. More »
It seems the recession has robbed office workers of their traditional venue to blow off steam for free. Anecdotal evidence from the all-seeing eye of Twitter has found that a significant number of office parties have disappeared altogether or gone pay-to-play, Budgets Are Sexy reports: More »
Cheer up! Sure, you may be unemployed. The bank may be close to foreclosing on your home. And other creditors are circling like vultures to make sure they get a piece of your hide before you declare bankruptcy or go underground. But at least you don't have to deal with a complete collapse of all commerce, no infrastructure to speak of and the total loss of all skilled labor. Of course, as long as you weren't covered in sh*t, you were probably doing OK. More »
The Wall Street Journal says that this year, mall Santas are spending their breaks looking bleakly at the wall and salting their mugs of bourbon with bitter tears. Why? Because your kids keep sitting on their laps and acting like characters from a Loretta Lynn song. One Santa used to joke that bad kids would get socks, but no more:
This year, he stopped telling the joke. Too many children were asking for socks. "They've probably heard their parents say, 'Geez, I wish I had some money to get them clothes,'" says Mr. Riemersma, 56 years old.
The American Recovery and Reinvestment Act of 2009 (ARRA) provided a 65% reduction in premiums for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, which you probably know as COBRA. Now the benefits are ending for the first wave of unemployed people who signed up at the beginning of the program. More »
We've followed the nationwide invasion of zombie retailers such as Sharper Image, Circuit City and Linens 'N' Things—brands that go bankrupt, then reappear on the web or in the same strip malls they originally roamed. Zombie brands don't just exist in retail, though. Mainstreet.com rounded up a horde of re-animated brands that includes a magazine and a major-league sports franchise. More »
The Wall Street Journal says the number of borrowers currently underwater on their mortgage (meaning they owe more than the property is worth) has swelled to 23%. Ouch. More »
—>The Mortgage Bankers Association has announced that 9.64% of all mortgages are now delinquent, and this delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972. More »
—>You've got pink slip! AOL plans to reduce its workforce by a third as it prepares to be spun off from its ill-fated Time Warner marriage. Who will be left to "cancel the account?" [AP] (Photo: RogueSun Media) More »
—>35 years ago, taxpayers paid $55.7 million to build the Pontiac Silverdome, former home of the Detroit Lions. The city of Pontiac has been itching to be free of the stadium's $1.5 million umaintenence bill, so it sold the property at auction. For $583,000. More »
—>Retailers have been hoping that we'd enter the annual Festival of Shopping with higher spirits than last year, but it looks like that might not happen after all. The Reuters/University of Michigan consumer sentiment index was updated today, and it shows a drop to 66.0, "well below October's reading of 70.6 and a sharp reversal of the 71.0 figure economists had expected." More »
—>Want a bargain on a house? Try snapping something up in on of these 25 US cities that saw the greatest plunges in their home prices in the 3rd quarter: More »
—>Shoplifting is up 20% in the UK as choice cuts of meat, fresh fish and fancy cheeses are increasingly getting stolen, mostly by middle-class women from boutique food emporiums and convenience stores More »
—>Shoppers are getting online coupon code crazy, with searches for promo codes up 55% from last year. But why waste your time Googling when you could be watching thewebsiteisdown.com and an armada of Twitter agents are searching for coupons on your behalf? More »
—>"It's the increased cost of doing business," was Citicard's constant refrain when Kent's husband called to complain about their latest pre-CARD act adverse action insanity: transfer $5000 in balances from other credit cards to this credit card or we'll double your interest rate. Listen to Kent's message left on the new Consumerist hotline and/or read the transcript: More »
—>In this job market, anything you can do to give your cat or dog an edge is worth pursuing. That's why you shouldn't enroll your pet in just any diploma mill—you want one that's a proven scam. Boingboing points out that there's a Wikipedia page to keep track of animals with fraudulent diplomas to make it easier to comparison shop for that next fake certificate. More »
—>WSJ takes a look at the "severance class" - unemployed formerly high-ranking folks burning through their chunky termination pay package to maintain the outward apperance of their pre-pink slip lifestlye. More »
—>Are you doing laundry this weekend? Are you running fewer loads than you used to, going longer between washes, or even using a friend or relative's equipment in order to avoid unloading a pocketful of quarters at the laundromat? If so, you're not alone. Laundromats, once thought to be a recession-proof business, are surprisingly vulnerable to economic downturns. More »
—>Earlier this week, I posted about a college student who couldn't get Capital One's Emergency Payment Protection Plan activated on his account because of missed deadlines. Andon wrote back today to say that after he sent an EECB to the credit card company's executives, they apologized and activated the service. More »
—>If you're still struggling to find a job in the current economy, you'll be happy to know that this morning President Obama is expected to sign legislation to extend benefits for few more months. The New York Times has more info on how the extension will work, and who qualifies for it. More »
—>The pace of job losses has slowed significantly, but the economy still divested itself of 190,000 jobs in October, sending the national unemployment rate to 10.2%, says the Bureau of Labor Statistics. It should be noted that the unemployment rate only tracks people actively seeking work. More »
—>Blockbuster must be a very unpleasant place to work, because police say a Colorado man stabbed himself and blamed "three skinheads or Hispanic males dressed in black." (Really.) According to the cops, the guy eventually admitted that he stabbed himself so he wouldn't have to go to work. More »
—>Cory wrote in earlier to complain about Capital One's nasty habit of having their collection department call you to upsell you on other products. At almost the same time, Andon wrote to us to let us know that the company's protection plan—the sort of thing they're trying to sell to people like Cory—is useless unless you can manipulate time (Andon can't). More »
—>Well this guy is doing it wrong: We've been alerted to a report from Haverstraw, NY where police say a man entered a Taco Bell, waved a gun around, demanded money — then asked for a job application. More »
—>Yesterday I grabbed a notebook app for my smartphone and spent a couple of hours organizing the various content folders—ideas for Consumerist, gift lists for Christmas, things to look up later on a computer—so that I could capture information more efficiently. Wait, why s ths n Cnsmrst? Because The Simple Dollar argues that by keeping a notebook and using it all the time (Lifehacker calls it "ubiquitous capture"), you can end up saving money. More »
—>A 5-month investigation by McClatchy Newspapers has found that Goldman secretly bet on the housing crash, went out and pimped the dickens out of assets it knew were junk, and may have broken securities laws in doing so. McClatchy found that Goldman... More »
—>Americans love steak. Now, in a recession, we still love it, but we've shifted to buying and cooking delicious high-end steaks at home instead of eating them in restaurants, thanks to greater availability of fancy cuts of meat to consumers. More »
—>No, just kidding. We know you still don't have a job. The Commerce Department announced that the economy grew 3.5% in the third quarter — snapping the longest streak of economic contraction since 1947. More »
—>Mobile homes have a less-than-stellar reputation, deservedly or not. I know my own mom always warned me against them by saying they were just tornado bait, which was enough to make me leery of even stepping foot inside a friend's mobile home growing up. But if you're not irrationally afraid of tornadoes, a mobile home might be a great housing option if you're on a tight budget or looking to save money, writes Michigan Telephone. More »
—>The old adage about booze being recession-proof may have some truth to it: alcohol sales are up 2% over the past year. Not surprisingly, the cheap stuff is leading the way, with sales of private-label wine — no, that's not the stuff you brew in your backyard — up 20%. And more people are shunning bars and restaurants, opting instead for the comfort of a brown paper bag and the neighborhood stoop. More »
—>What recovery? There were 937,840 foreclosures in Q3 in the US, according to RealtyTrac, the highest quarterly level since they starting issuing reports in 2005. Let's take a closer look via giant sexy graphic visualization, inside. More »
—>Gas prices have spiked in the last two weeks, reaching levels last seen during the peak of the summer driving season, says the AP. The increase in gas prices has retailers worried that consumers who are putting more money in their gas tanks will buy fewer gifts during the upcoming holiday season. More »
—>Do you want to save money by making your own meals at home, but aren't sure where to start? Let the blog Budget Bytes help you. It contains not only frugal but delicious recipes (including vegetarian ones) broken down by total cost and cost per serving, but a guide to stocking your pantry when you first live on your own or learn to cook. More »
—>The Champagne Bureau, a trade organization representing "the grape growers and houses of Champagne, France," just sent us a nonsensical press release warning consumers to be on the lookout for imposter champagne. WATCH OUT! You're pouring sparkling wine into your mouth, you jerk! The thing is, the only real reason "champagne" is unique is because wine houses in that region of France managed to get laws passed to prevent anyone else from using the word on their own sparkling wines. They're all sparkling wines; how they're made is what determines quality. More »
—>Here's a question a lot of you asked: How will the proposed Consumer Financial Protection Agency deal with credit-report agencies like Equifax and TransUnion. Jump in for the answer from Diana Farrell, Deputy Director of the National Economic Council. More »
—>The personal finance blog Moolanomy posted a list of 25 cheap Halloween costumes, including ones that make no sense (see "Soup and crackers") and ones that sound borderline dirty (see "Facebook wall"). The list made us realize that our readers probably have a lot of equally cheap, and equally-or-more creative, costume ideas of their own. More »
—>If you're just starting out in your career, BusinessWeek has some sobering news for you. Statistics show that people who come of age and spend the early years of their careers un- or underemployed will fall behind their always-employed peers in both earnings and career status, and most will never recover the lost ground. More »
—>Last week, we brought your financial reform questions to Diana Farrell, Deputy Director of the National Economic Council. In this segment, we ask how the proposed Consumer Financial Protection Agency will work, and how consumers will be able to get their complaints addressed. More »
—>Do you hate Bank of America? Well take today's earnings report and wallow around in it like Ann-Margret in beans, becuse the bank has posted a loss of $1 billion before dividends to preferred shareholders—"When those dividend payments are included, the loss was $2.24 billion," reports the New York Times. More »
—>If there's one thing my grandmother and I agree on, aside from the fact that Marlena being possessed was a dumb storyline on Days of Our Lives, it's that it makes no sense to pay top dollar for deliberately weakened/damaged denim. The ConsumerReports blog ShopSmart has found a website that offers tips on how to distress your jeans at home, like using a pumice stone to cut holes, or a cheese grater to create patterns. More »
—>You had questions, we got answers. On Tuesday, we went to Washington and interviewed Diana Farrell, Deputy Director of the National Economic Council, about the Consumer Financial Protection Agency. Here's a piece of the video of our interview, where Farrell answers your questions about payday lending and protections for underserved consumers. More »
—>If you're looking for a way to get a good deal on renting an apartment, personal finance blog Wise Bread has some suggestions. Recently, they offered seven tips for saving on apartment living which, surprisingly, didn't focus completely on costs (there are quality of life issues to consider, of course.) Here are their ideas: More »
—>At some point, we're going to have to stop referring to every red-hued outbreak map as being zombie-like, but this is not that point. It's nearly Halloween, the #2 movie in the nation is Zombieland, and yesterday the president of the Federal Reserve Bank of St. Louis warned that unemployment may exceed 10% before the end of the year. This is the appropriate way to view unemployment today. More »
—>As if your job search wasn't already discouraging enough, this month the Department of Labor reported that there are now 6.3 applicants competing for every job opening. That's the highest since the recession began. More »
—>Sure, you can save ink and paper by changing around your printer settings, but to truly commit to saving ink or toner, try changing your font. More »
—>Marlene Alexander will buy pretty much anything, at least once, from her local dollar store. Then depending on how well it holds up, she might write about it to warn others. She's put together a list of some of the biggest dollar store failures she's encountered over the past year. More »
—>We love free, and we love attempts to make people savvier about personal finance, so we really like this new personal finance website from the University of Idaho. It's got all the basics covered, and there are things like checklists and downloadable worksheets so you can practice what they're preaching. Some of the information is geared specifically to Idaho residents, but for the most part this is useful content that anyone can take advantage of. More »
—>In its latest effort to take the burger experience to a higher level — and win back consumers who've migrated to "fast casual" restaurants — Burger King is remodeling more of its eateries to include what His Highness describes as a "contemporary industrial palette of metallic and black accents, complemented by finishes that resemble brick and concrete." But will the fancy new look, which was relaunched this week in Amsterdam, get customers to eat more Whoppers? And how does a creepy guy in a plastic mask sell what the company calls an "intimate and engaging dining" experience? More »
—>Comcast. DirecTV. Dish Network. Oh, we love to hate them, don't we? But without these (and others), where would we get the mind-numbing entertainment that has America hypnotized? But of course we don't want to pay a lot to be comatose, so that's why Bible Money Matters' suggestions on how to get the best deal when signing up for cable or satellite TV are so valuable. More »
—>Don't look now, but some restaurants seem to be cutting back on that staple of the family dining experience: crayons and paper for kids. NPR's Planet Money blog reports that the Red Robin chain has gone from four crayons per customer to two. How long before they drop them completely, forcing parents to — gasp — hold conversations with their children instead of letting them color images of popular menu items while mom and dad knock down their pre-meal cocktails. More »
—>This month, Consumer Reports is publishing the results of a survey of American adults asking about their adoption of "green" behaviors. Interesting, right? However, we can't help but wonder whether some of these behaviors are more about saving money than saving the planet. More »
—>Through a combination of extreme cheapness, hard work, and determination, Alan Corey became a millionaire at an age when most of us are still trying to figure out how to start paying back our student loans. How did he do it? He shared some of his saving secrets with Mainstreet.com, and they're useful whether you aspire to wealth or just need more money to pay down debts. More »
—>If you've been out of work for months, and still don't have any leads on your next job, you've got a lot of company. According to the latest government job report, the average job search now takes over six months, the longest average since the government started tracking unemployment in 1948. More »
—>Bad news for any kids expecting a big haul this Halloween. The National Retail Federation is out with its spending projections for the holiday, and they're grim. Total spending for Halloween is expected to drop from $66.54 per family last year to $56.31 this year. The numbers include candy, costumes and decorations — but not shaving cream, eggs or toilet paper. More »
—>Kiplinger has put together a list of ways to reduce costs for auto, home, and life insurance. For auto and homeowners insurance, boosting your deductible from $250 to $1000 can lower your premiums between 15-25%. If you haven't looked at your life insurance policy in a while, don't wait any longer to shop around—rates have "dropped significantly" over the past 15 years but are now on the rise. And when calculating homeowners insurance, don't fall into the market value trap: make sure you're covering the true cost of replacing only the home and what's inside, not the value of the land. More »
—>On Tuesday, the House voted to extend unemployment benefits for Americans who live in states where the unemployment rate is greater than 8.5 percent. 400,000 people were set to run out of benefits at the end of September, and will now continue to receive them until the end of the year if the bill passes. More »
—>The prices of commodities has dropped from their peaks of last year, yet food makers are not reducing consumer prices, reports Marketplace. Now this is rather funny, and familiar. More »
—>The Chicago Tribune says that when 17-year-old Brianna Rice was diagnosed with celiac disease in February — she had insurance. Her insurance company, however, has rescinded that coverage because her parents allegdly lied on her application — by neglecting to mention her troubling medical history of dizziness, elevated cholesterol levels, ongoing fatigue and a persistent cough. More »
—>The big benefit of rechargeable batteries, aside from possibly being more ecological, is they're supposed to save you money in the long run. However, blogger Len Penzo argues that for some devices, you'll spend more money if you go the rechargeable route. More »
—>Forget GDP growth, the unemployment rate and even the Big Mac Index. If you want to know how the economy is really doing, and you're male, just open your fly. (Note: We don't recommend doing this at work.) According to the Men's Underwear Index, if your underwear is relatively new, the recovery is on the way. If not, well, we really don't want to know about it. More »
—>Are you struggling financially these days? You're certainly not alone, and you even have something in common with Jim Press, one of Chrysler's top executives. Press, hit hard by the housing market collapse and the lack of bonuses from Chrysler as the company failed, faces debts including a $800,000 unsecured personal loan and a $947,000 federal tax lien on his home. More »
—>Massachusetts strippers have filed lawsuits against the clubs that employ them, claiming exploitation...of the financial kind. As the economy worsened, clubs tried to take a larger cut of dancers' falling tip incomes. More »
—>The waters of international trade with the Chinese are perilous and murky to say the least. Sometimes it seems that all we do is buy, buy, buy. Not so. We do have something that the Chinese want. Chicken feet. Apparently, our chicken feet are awesome. More »
—>We've been talking about the next wave of the mortgage crisis for quite some time now, and it seems that, as predicted, it's cresting and about to hit. We are, of course, speaking of Option-ARM loans — considered the riskiest of all mortgages due to their ability to grow rather than shrink. Yes, there actually exists a mortgage that allows the borrower to pay less than the interest that is accruing on the loan.More »
—>CNN profiles a young family living in a Chicago suburb who have decided to carry out an experiment in frugal living—they want to see if they can reduce their expenses enough to get by on about half of what they made before the wife and sole breadwinner was laid off earlier this summer. More »
—>If you think 99 cents is a fair price to pay for the latest fart-simulator or "Are You a Moron?" quiz in Apple's App Store, Case-Mate has a deal for you. The company's Recession iPhone case is made from 100% cardboard, and sells for 99 cents — with free shipping included. Case-Mate doesn't claim that the case is actually useful in any traditional sense of that word; the FAQ for the product makes it clear that there's no warranty, it doesn't include any kind of screen protector, and that it's flammable "if you light it on fire." More »
—>The anonymous, newly unemployed personal finance blogger behind Well-Heeled with a Mission put together a timely, helpful guide on how to avoid wasting your time at job fairs and actually come away with the experience with some positives rather than feel as though you've wasted your time in a cattle call. More »
—>Housekeepers at three Hyatt hotels in Boston made over $15 an hour and had benefits like 401(k) retirement plans and health insurance. On August 31st, Hyatt laid them off en masse—after first having them train their replacements under the guise of creating a holiday fill-in staff—and turned the housekeeping duties over to an outside firm. More »
—>Tough times has forced a developer in South Florida to rethink his condo hotel development, so he's reconfigured it as a hotel-hostel that offers not just the standard shared room arrangements familiar to any college student who's traveled, but also slightly more expensive private rooms with kitchenettes and basic hotel amenities for $50 a night, writes the South Florida Sun-Sentinel. More »
—>How did economists get it so wrong, asks Paul Krugrman in a recent NYTM article. He examines several fallacies of these dismal professionals who, until everything exploded, were slapping each other on the back for having achieved something like the superstring theory of money. Oopsies. More »
—>Good news? Federal Reserve Chairman Ben Bernanke says that the recession is over, but that it won't really stop the rise of unemployment — currently at a 26-year high of 9.7%. More »
—>The NFL's blackout rule — which prevents games from being broadcast in home markets if there is no sellout — is coming under fire lately as some teams (ok, let's face it, we're talking about Jacksonville) might not have a single home sellout all season. More »
—>The San Jose Mercury News has compiled a list of financial tips for people just entering college. These are the sorts of things that will help you avoid racking up huge debts or wasting money you don't have on fees and penalties—and of course they can apply to pretty much anyone, not just college students. More »
—>A panel of wizard-hatted forecasters consulted by The Wall Street Journal has declared the recession officially over. But don't break out the champagne just yet — unless you're one of those gilded bankers we mentioned earlier. "We are in a technical recovery, but risks remain abundant," Diane Swonk of Mesirow Financial told the paper. "It will still take some luck and skill to get Main Street to feel some of the relief Wall Street has felt." More »
—>You cheapskates are really ruining this economy. First, you decided you couldn't afford to gamble. And now you're giving up on another industry that could be crucial to pumping up our flaccid economy: porn. According to The Economist, revenues in the $6 billion a year adult entertainment industry have dropped by 30%-50%, with some producers claiming that they're down by as much as 80%. Film production has dropped from 5,000 to 6,000 a year to about 3,000 to 4,000. More »
—>Two weeks ago we mentioned that Cognitive Daily was running an informal poll about thriftiness. Here at Consumerist, we like to take polls. We bumped up their response rate to over 5,000, far higher than what they usually get, and now they've posted the results. Apparently we all think we're thriftier than everyone around us, especially our significant others, and the world wants to shop at the GAP. We bet the GAP is happy to hear that—too bad (for them) the poll was informal. More »
—>Good work, consumers of America! You've collectively reduced your outstanding debt by $21.5 billion during the month of July. We're so proud. Except, oops, that's not so great for the economy. More »
—>One industry that has grown in the recession is set for a fall. No, not vehicle repossessions or shoe repair. I'm talking about the mid-decade cupcake boom. According to Slate, the industry is due for a bust. More »
—>We love this column from Marty Nemko over at Kiplinger because it's sort of a go-get-'em morale booster to the ugly—only instead of boosting morale, it just gets more depressing as it goes on. But funny depressing. And after all the weird advice on watching your weight and avoiding hairpieces and wearing moderate makeup, Nemko makes an interesting case for why "ugly" people are better hires. More »
—>The NYT has a 6-page story about the self-storage phenomenon, the effect of which was to make us grateful for the internet because were we to have to physically store these NYT Magazine features we'd be destitute. In any case, its an interesting article. If you've ever wondered what people were doing with all the crap they were buying in the last decade — well, a lot of it ended up in storage. More »
—>Yesterday, a gorilla* stormed through the offices of Samsonite Corp, the "world's top luggage maker," and jumped up and down on their financial status. Their retail unit filed for Chapter 11 bankruptcy and will close approximately half of their 173 stores. More »
—>The Wall Street Journal says that Bank of America is interested in paying back a portion of the bailout money it received, with the goal of getting out from under the purview of the salary czar and reduce a "layer of federal involvement in its affairs." More »
—>The cognitive psychology blog Cognitive Daily has put up a quiz asking you to rate your thriftiness compared to that of your parents, your best friend, and your significant other. What will we learn from this quiz when it ends on September 3rd? That people like quizzes, obviously, as well as how many respondents insist on mashing up all the old soap into a "new" bar in the bath. (I do this, but because I think it's fun, not thrifty.) Take the quiz here.More »
—>Kiplinger lists four ways you can still get some cash back from the government, although you'd better get a move on if you want to qualify. Included are a first-time home buyer's credit that goes away November 30th, a new car tax credit, a COBRA premium subsidy for people laid off, and a slight unemployment payment benefit. More »
—>What do you stop buying when you are broke? Bottled water. After a decade of rising consumption, bottled water sales are starting to trickle off — and companies are responding by dropping their prices. More »
—>The NYT says a little less than a year after the economic meltdown, the government is starting to see a profit from banks repaying bailout money. More »
—>Everyone (including us) snickered when an unemployed woman sued the college she had graduated from only months before, but the news story did help bring to light the overly optimistic or outright misleading claims made by some for-profit educational institutions. Now, thirteen former students of Everest College's Dallas campus have sued the school, claiming that they were misled about the transferability of the school's credits and their prospects for employment. More »
—>Given how many banks have failed and been taken over by the FDIC this year (84, including three yesterday), it's not one bit surprising that the FDIC isn't doing too well, funds-wise. It's down to $22 billion, the lowest the failed bank fund has been since the savings and loan crisis of the early '90s, when it needed to borrow money from the Treasury Department to keep going. More »
—>Slate's column for ladyfolk, doubleX, recently tested 5 home hair dye kits to see which of them work the best. It seems Slate's fancy writers are too good for Kool-Aid or RIT, which is what my friends always used when they needed a good ugly green tint; apparently Slate also wanted to test brown dyes and not ugly green ones. Of the five, the worst was the $6 "Rainbow Henna Persian Dark Brown," while the best was a $14 Clairol product, which handily beat out a $30 kit from Frederic Fekkai. More »
—>This is a depressing phenomenon, if it's real. According to the Associated Press, consumers are ditching items before they buy them. They've always done this, of course, but now they are supposedly doing it more.More »
—>We've never looked at a hotel's bathroom counter and thought, "I could probably roll out some dough right there." We've also never tried to use an iron for a hot plate, or shoved uncooked spinach into the coffee maker. But now that we've watched this proof of concept video from George Egg, we may consider going grocery shopping the next time we're stuck in a hotel with an overpriced room service menu. More »
—>Normally we wouldn't rely on the phrase "third largest bank failure of the year" to impress upon you the seriousness of a situation, but since we're at our 81st bank failure of 2009, we're going to go with it. Meet Guaranty Bank of Texas. It has now failed. More »
—>Starbucks has raised the prices of some of their drinks and lowered others, in an effort to differentiate their mixed coffee drinks from those currently offered at McDonald's. By making them more expensive, apparently. More »
—>The choice to have a child is usually not a financially-focused decision. And we're not so crass to suggest that it should be a dominant factor. But the cost of raising a child properly should at least be one of the factors that couples consider before they take the plunge into parenthood. Why? Because raising kids is a very expensive undertaking. More »
—>Earlier this week, the Washington Post shared the story of a man who tried hard to keep up appearances, and to carefully choreograph his routine so his friends and neighbors wouldn't think of him differently. Finally, he tired of the charade, and outed himself. As an unemployed person. More »
—>Starting Oct 1, AMEX Blue is raising rates on all customers, INCLUDING on OLD balances, AND they are telling customers that you can't just opt out and cancel the card (like normal). Turns out that opt-out we all took for granted was only by the credit card companies' good graces. More »
—>Do you need cash right now, but are worried that you might lose your job in the next two weeks? Guarantees for customers who lose their jobs have worked for Hyundai, Ford, GM, and Sears, so now the practice has expanded to the payday loan industry. More »
—>For the third time in the last five months a new record for foreclosure filings has been reached says foreclosure tracking firm RealtyTrac. July saw an increase of 7% from June of this year and, even more telling, a 35% increase from last year. More »
—>Sales of Bud Light are down, probably because of the recession, but we hope it's because of the aggressively annoying "Drinkability" campaign. In any case, AB has decided to roll out more than 15 new "Drinkability" commercials in the coming weeks, according to the Wall Street Journal. More »
—>McDonald's sales rose 4.3% on the tongues of customers clamoring for a taste of the good life for cheap. McCafe coffees, which offer a proxy of brews found in places like Starbucks, and Angus burgers drove sales. [Bloomberg] (Photo: andinarvaez) More »
—>Big news! AIG, poster child of the economic meltdown, has reported a profit. The company says it had a net income for the second quarter of $1.8 billion, which is much better than in 2008 when it lost $5.8 billion. So, how much did we-the-people get for our investment? $1.5 billion. More »
—>Salvage grocers are stores that stock all the dented, crushed, slightly past their "best by" date products that consumers have been trained to avoid. Because of this, they're the Dollar General or Big Lots of supermarkets, with prices up to half off regular store prices, says the Associated Press. More »
—>Don't hit on the interviewer. Don't ask whether they might be able to discover your past arrests. Don't ask what the company does, or see if they can pick you up when it rains. In fact, here are 43 things you shouldn't say during an interview if you actually want the job. More »
—>Guess what — summer is over. Ok, so it's not technically over. But the carefree, I-don't-have-to-think-about-school part is certainly long gone. Think differently? Just look at the Sunday paper ads, the email promotions and banner ads all over the web, and the signage in almost any store you walk into these days. Oh yeah, it's back-to-school time, baby. More »
—>Starbucks is rolling out a company-wide speediness initiative, which can only mean one thing: forcing managers to take apart and put together a Mr. Potato Head for two hours straight. More »
—>There is currently a $75 billion program called MHA or Making Home Affordable, which aims to modify mortgages so home owners can stay in their homes. According to a new report by the Treasury Department, some banks are starting off so slowly that they've yet to modify a single mortgage. Others, like Bank of America, have modified only 4% of the eligible mortgages in its portfolio that are 60 or more days delinquent. More »
GM is planning massive layoffs. Shockingly, just asking people to quit for money didn't work. A job in this economy is apparently worth more than cash payments of $20,000 to $115,000 and $25,000 toward a new-vehicle purchase. [NYT] More »
—>Here's a common problem: we have many ex-lovers, who have put ice on our wrists and given us countless pearl necklaces. But these wealthy suitors have left our hearts broken and in this economy, we're hurting for cash. Thankfully, we discovered Out of Your Life (motto: "It's time to break up with his jewelry, too"), who will buy our tear-stained jewelry back from us! More »
—>Cash For Clunkers never had a chance. It was smothered at birth by a pile of paperwork and ever-changing rules, as this dealership worker reveals, using a combination of the words "cluster" and "fudge," except, of course, not fudge. More »
—>How would you like to save 4% to 7% on many of your back-to-school purchases? Or maybe you aren't a student but have some fall clothing shopping to do and would like those savings yourself. Or you're been putting off that computer purchase for a few months. Well, with the tax holidays many states are offering, now may be your time to pounce and buy, buy, buy. More »
—>NYC wants to have less homeless people — even if that means buying them a one way ticket out of town. The NYT says that the Bloomberg administration has paid for 550 homeless people to leave the city — including flying people to "Paris ($6,332), Orlando ($858.40), Johannesburg ($2,550.70), or most frequently, San Juan ($484.20)." More »
—>Consumer Confidence is down again. For example, the new score is 46.6. NPR says, "It would take a reading above 90 to signal that the economy is on solid footing." More »
Verizon is having a bad day as business customers cut down on phone lines. They're planning to cut 8,000 jobs in the second half of the year. [Bloomberg] More »
—>The world is currently overjoyed at the news that new home sales have increased by 11% this month, which is apparently much more than expected, but are still 21% below the levels of a year ago. More »
Here are 9 ways to save money on groceries. Did you know you can frequently find your milk or juice for less at convenience stores? [MintLife] More »
—>The deepest "employment slump of any recession in the last eight decades" has consumers convinced they're about to lose their jobs — and that's affecting consumer confidence, says Bloomberg. More »
—>Depending on the source, the cost of an average wedding in the US is somewhere between a low of $20k and a high of almost $30k. No matter what number you use, that's expensive. But Wise Bread offers us some extreme weddings savings tips than can make the day very affordable. But be warned, there will be lots of compromises. Here are their suggestions and our quick summaries of each idea: More »
—>If you're worried some financial cataclysm will knock you into a miserable life situation, why not jump the gun and start slumming it to anticipate the meltdown? MSN Money writer Donna Freedman advises such a maneuver, along with other pre-emptive strikes against destitution. More »
—>The Los Angeles County coroner's office reports that more bodies of deceased residents are going unclaimed than in the past, then cremated at taxpayer expense. Why the increase? Families claim that they simply can't afford funeral expenses. More »
—>Fed Chariman Ben Bernanke testified before the House Committee on Financial Services today, reassuring lawmakers that the bailouts were working — but cautioned that they shouldn't expect their constituents to have jobs again until 2012.More »
—>Given the state of the economy, it seems like everyone is looking for ways to save on non-discretionary expenses. Lucky for us, The Digerati Life offers some useful thoughts on how to cut back on TV services without turning off media completely. Their five suggestions include: More »
—>At first glance, an awful economy would seem to be bad for marriages, since money squabbles would presumably lead to more fights. But divorce filings are down 50 percent nationally according to an Associated Press story. More »
—>Here's the problem with Crocs. You either love them or you can't stand them. You make fun of them mercilessly, or you can't imagine a more comfortable shoe. What's problematic for the company that makes Crocs is that they don't really wear out...and who needs multiple pair of glorified garden clogs in a recession? More »
—>Consumer delinquencies hit a record high in the first quarter of the year. Debt-to-disposable income ratios are down only slightly from the beginning of the recession. Who will save the U.S. economy if consumers can't return to our habits of buying crap we can't afford and don't need? More »
—>MSN Money has a list of 10 secrets about gas stations that could cost you money if you don't know about them. The best ones are about why you shouldn't use a debit card. For example, some stations will ask banks to place a hold on some of the cash in your account to cover your purchase, and won't report the real purchase amount for a few days, leaving your cash in limbo. More »
—>Chain restaurants are trying to lure in recession-weary diners with deep discounts, but franchisers worry that if you suddenly start paying half-price for sandwiches, you won't be willing to pay full price when the economy recovers. We're all accustomed to chain restaurant sandwiches costing $8 and up, but how much do those sandwiches really cost restaurants to make? More »
—>Legal brothels in Nevada are in a situation that has seemingly wandered out of an Economics 101 textbook. Scary as it is to reduce In the recession, more women are entering sex work (both legal and illegal) but there are fewer customers to go around. More »
—>Acknowledging that skittish consumers are still unwilling to buy big-ticket items, Sears tomorrow plans to unveil a bold new guarantee: if you lose your job after charging a purchase worth $399 or more to your Sears card, the retailer will credit 1/12th of the purchase price to your account for each month you are unemployed. If you stay jobless for one year, the debt is entirely forgiven, and the appliance is yours to keep. More »
—>A Botox clinic in Virginia made news recently when it offered free anti-wrinkle injections to job-seekers. The "Botox Bailout" event allowed old, recently unemployed hags the chance to trade in their wrinkled resume for a wrinkle-free forehead. Because, if you're having trouble finding work in the middle of a recession then, duh, it's because of your crow's feet. More »
—>When are we going to pull out of the recession? The Kiplinger Recovery Index thinks it can tell you, using a sophisticated system of red and green colored boxes and checkmarks and X's. More »
—>Forbes is tired of you sitting around all the time staring at the TV. They've put together a list of all the ways you're losing money by not trying just a little bit harder. For example, by not taking the time to choose the best rate on your savings account (which usually means looking at online banks instead of the local one where you do your checking), you're missing out on extra interest. Another area: not paying close attention to deadlines on 0% finance offers, where one slip can cost you dearly. More »
—>It's so expensive to produce milk right now — due to low demand and high feed costs — that farmers are being paid to slaughter dairy cows in order to "shift the pain to consumers," says Bloomberg. More »
Walgreens says declining home values and rising unemployment are causing consumers to cut back on everything but essentials like soap and milk. Consequently, the drugstore chain is having to spend money revamping its merchandise selection to match the trend. It's back to basics if you want to make money. [Bloomberg] More »
—>Even though gas prices keep rising, businesses haven't been sticking customers with price hikes. In fact, the bear economy has staggered the Consumer Price Index once again, with the index rising only 0.1 percent in May. The miniscule, less-than-expected increase, following a flat April, means that prices were 1.3 percent lower in May than they were a year ago — the largest year-over-year drop since 1950. More »
—>Avon, Tupperware, and other direct-sales companies are gaining in popularity, just as they did during the 1990-91 recession. Whether they still have jobs or not, people are looking for ways to earn additional income. More »
—>The economic recovery plan includes a nice little $25 a week bump for unemployed folks — but for some it comes with a catch — they no longer qualify for hundreds of dollars a month in food stamp benefits. Whoopsies! More »
—>Rather than layoffs, a number of employers are turning to furloughs - forced unpaid time off - to meet their budgets. According to a NYT article, employees are handling them in different ways. Some use it as chill time. Others keep working anyway without pay, either out of guilt, routine, or fear of an actual layoff. Has your company been hit with furloughs? How are you dealing? Take our poll inside. More »
—>Feeling poorer lately? You are! A new government report says that $1.3 trillion dollars of American wealth was vaporized in the first quarter of 2009. More »
—>Inspired by our post on thirty- and forty-somethings trying to snag traditionally teenage jobs? If you've always wanted to be a lifeguard, bar back, or roller coaster operator, here are some tips for beating the other applicants and letting teenagers worry about the unemployment rate. (Photo: Atwater Village Newbie) More »
—>Newfangled doesn't necessarily mean that much better, especially when it comes to taking medicine. Getting prescribed the latest and greatest pill could mean you're paying more when there's a perfectly good drug out there that can do the same job, minus the jacked-up new drug patent cost. Vanguard says: More »
—>It's the end of an era. The parentally-subsidized idle urbanites of New York aren't getting the fundage they used to, and they have to get paying jobs now. Or move in with their parents. (Here I thought living with my parents after college was too much parental subsidy.) While Gawker's coverage of this story is not to be missed, let's look at it through a Consumerist lens, shall we? More »
—>New York Mayor Michael Bloomberg told the Daily News that the residents of the swanky failed-condo-turned-homeless-shelter shouldn't get too comfortable. They'll need to move on. More »
—>Hopelessness hit 9.4% in May. Oh wait, we meant joblessness. Actually, with jobless claims about half the average loss of the past six months, could hope poised for a comeback? [NYT] (Photo: joshuahoffmanphoto) More »
—>Could this be the nicest homeless shelter in America? The Daily News is reporting that the city is paying $90 a night per apartment for the use of a failed luxury condo development — which features granite countertops, marble bathrooms and walk-in closets. (The $90 a night figure includes social services, housing help and job counseling designed to get families back on their feet.) Local residents, some of them interested in renting an apartment in the building, are pretty ticked off. More »
—>Budgets are supposed to leave you money left over, right? Well, the zero-based budget takes the opposite view, and thinks you should allocate every single dollar from every paycheck so that you're left with nothing. Well, nothing that you don't know what you're going to do with. The allocation can, and probably should, include savings, for example. Getting Finances Done shows you how to get started with this budgeting technique that can save you time, headache, and yes, money. To jumpstart things, here's a spreadsheet template you can use. More »
—>Mitchell wrote to us complaining about Walgreen's decision to cancel its EasySaver Rebate program, where customers could submit multiple rebate requests at once and get the money back along with a 10% bonus applied to a gift card. Although the program is no longer with us, it's still very possible to game the reward/discount systems at Walgreens and other chain drugstores to accumulate huge savings. Sometimes you can even make money back. More »
—>BusinessWeek has an interesting article about a little known program that will allow first-time home buyers (technically, those who have not owned a home in three years) to use the 8k tax credit to offset down payments or closing costs. More »
—>A report from a private employment service says that US employers shed 532,000 jobs in May, less than in April, but not much less. It's also less than expected. More »
—>Amazon.com has released the latest batch of special coupon codes and Probargainhunter has the roundup. This month, they seem to all be for groceries. More »
—>As numerous commenters on our "50 Restaurants Where Kids Eat Free Or Cheap" pointed out, it's easier to get good food at a good price with a nice home-cooked meal with fresh ingredients. Then we have the perpetual dilemma, what to make, and how to make it? More »
—>"Save a part of your income and begin now, for the man with a surplus controls circumstances and the man without a surplus is controlled by circumstances." - Henry H Buckley More »
—>Following up on yesterday's roundup of recession-related deals, here is an article from Forbes on how scalpers, season ticket holders, and teams themselves are cutting deals on baseball tickets, with below-cost tickets, BOGO deals, and cheap food. More »
—>Clothing retailers are holding off on their crazy, desperate discounts a bit, and plan to discount less aggressively this summer. Why? Women's Wear Daily reports that it's not so much that the economy's improving (it really isn't) or unemployment has stopped rising (it hasn't) but Americans need stuff. Retailers anticipate that they will need to mark down, but not at the desperate levels that have characterized the last six months or so. More »
—>A non-profit group recently surveyed the prices at 49 different mortuaries and crematoriums in San Diego, and found that "prices vary widely, with some mortuaries charging nearly twice as much as others for similar combinations of services." Although the study focuses on one city, it's a good reminder that you should check around and not assume that pricing is consistent throughout the industry. More »
—>Forbes wanted to know which states had the highest average balances per household in May, so they took the total amount of debt in 50 major metropolitan areas, divided that by the number of households, then divided that by the median household income for that area for May. Here are some of their results. More »
—>The decline in the "work clothing" market continues to take its toll. S&K Menswear are closing all 105 of their retail stores. The liquidation will be handled by Gordon Brothers, so don't expect any actual deals. Going-out-of-business sales started on Thursday, May 21. More »
—>It's Memorial Day weekend, the weather is looking nice, and people are leaving work early to hit the pool, fire up the grill, play golf, or enjoy our national pastime. We're doing none of those things, so we thought we'd ruin it for everyone else. More »
—>One of the programs of the American Recovery and Reinvestment Act is COBRA Continuation Coverage Assistance. It helps people who have lost their jobs pay the sometimes hefty premiums for continued health insurance coverage, paying 65% of their premium. The program started in February, and Renee was enrolled right away. This month she was billed for her full premium again with no warning. More »
—>Eric just graduated from an MBA program Monday and landed smackdab in the middle of our job-shriveling recession. So what did he do? To try to land a job at Microsoft, he bought Facebook ads that specifically targeted employees at the companies he wants to work for. It cost him less than $50, and he got over 20 Microsoft employees to contact him offering their help. Here's how he did it: More »
—>Remember last year when all the food manufacturers were raising prices and shrinking portions because the cost of raw materials had risen dramatically? Now that costs are down, they're reluctant to lower prices. It's a good time to be in the food business. More »
—>Video games are up, and books are down. GameStop says sales of used games jumped 32%, as the retailer posted a 13% rise in fiscal first-quarter earnings. Why is GameStop doing so well while other retailers suffer? Its used video game program has excellent profit margins. More »
—>I've always thought that the U.S. should bring back larger-denomination coins. I like concluding an evening out in Canada or in the Euro zone and discovering that there's the equivalent of $14 or so in change sitting in my pockets. A man in Pennsylvania apparently feels the same way, and succeeded in buying ice cream with a counterfeit $20 coin. More »
—>Oh, human error. New Jersey has announced that an unknown number of unemployed residents had their personal information shared with companies they never worked for. More »
—>BusinessWeek has an interesting article about the economics of regional airlines — the smaller companies that are subcontracted to operate the less profitable routes for major airlines. Some were stunned to find out that first officer on the flight that crashed in Buffalo, NY only made $23,900 a year. Is this too little? More »
Mark Calisi, 47, who owns Eagle Auto-Mall in Riverhead, New York, says he was "devastated" to learn that his dealership would be closed. He said Chrysler accounts for a third of his business, which also sells Volvo, Mazda and Kia, and that on Thursday he had to sack 30 of his 100 employees. More »
—>One in every 324 households in this country received a foreclosure filing last month, according to RealtyTrac. This marks the all time high since the firm started tracking filings in 2005. Foreclosure filings are up 34% since last year. More »
—>Here's a story that we missed late last week, probably because we were busy having nightmares about snake heads. Toyota lost $7.74 billion this past quarter. That's more than GM (though less than GM pre-bailout), and much more than predicted. It's the company's first annual loss since Elvis was in the Army. More »
Did you know that in California, if you ask the Subway sandwich mechanic (or whatever they're called) to toast your sandwich, you'll be charged a sales tax, whereas if you go untoasted you won't? Crazy! Thomas Hawk says you should always order your coffee to go at California restaurants, even if you plan on drinking it there, to avoid a similar crazy tax. [Thomas Hawk] (Thanks to Glenn!)More »
—>The Circuit City death watch is long over, but now there's a way to preserve those memories forever—maybe even to outfit an entire troupe of Circuit City re-enactors. Reader chainofcommand02 was shopping in a grocery outlet store when he discovered several cases of Circuit City polo shirts. Yours, for only $1.00. More »
—>The New York Times DealBlog liveblogged the GM conference call. We're glad they did, because just reading their recap is depressing enough for us. More »
—>How do you turn the purchase of a purse with a four-figure price tag into a sound financial decision in a recession? That's the task luxury brand marketers and fashion magazines have right now, and their solution is to spin luxury purchases as an "investment." But is it a good investment? Not really. More »
—>Some adults who are out of work are now going after classic teen jobs, says ABC News. In Florida, which has the fourth-highest unemployment rate of the nation, men in their 30s and 40s "have pulled on swim trunks in hopes of beating out the teenagers for a few choice positions as $9.37 an hour lifeguards." The report also says adults are trying out for jobs at places like Six Flags. All of this reminds us a little of this Kids In The Hall Sketch (see below) where a young boy finds a stray businessman and brings him home. More »
—>In a move that surprises absolutely no one, KFC has ended its free chicken promotion. If you still have a coupon, visit a participating restaurant for a raincheck.(Side note: The president of KFC is Australian South African?!) More »
—>A new survey of American consumers shows something very unusual — they've lost their interest in shopping. Is this lack of interest driving them to discount stores like Walmart? Seems so. More »
—>You're not getting the most out of your freezer, reports NYT. Have you tried freezing more food? It's a two-pronged process - 1) Take raw ingredients you have too much of: freeze them. 2) Take stuff you've cooked: and freeze it. Remember that a full freezer is more efficient, fight freezer burn by double and triple-wrapping food, and don't forget to label. Check the article for advice on strategies and tips for freezing various kinds of food. More »
—>It's the first lunch period since the Oprah-promoted KFC grilled chicken giveaway started. Lines are predictably long. More »
The Onion Is Killing Their West Coast Print Editions "Unfortunately, despite healthy readership in both Los Angeles and San Francisco (readership has actually risen despite our reduction in copies in recent months) the advertising in both cities has been abysmal," CEO Steve Hannah said in a memo. [Gothamist] More »
—>An entirely unscientific ABC News poll of mothers shows that they would prefer some nice time with with their families to tangible gifts. I thought this was always the case, but apparently it's an indicator of the recession or something. More »
—>Kristy Hammonds, the woman who filmed her friend Michael doing inappropriate things to the food they were supposed to be preparing, needs a job to feed her two kids. She says she's been trying to get work at other fast food restaurants, though, which might be part of the problem. More »
—>Wal-Mart's management is watching their customers during the recession. What have they learned? More shoppers now make lists, instead of buying on impulse. Sales of frozen vegetables are up; sales of Angus beef are down. And mysteriously, $5 white toilet seats are a hot item near Denver. More »
"We are hopeful that the very sharp decline we saw beginning last fall through early this year will moderate considerably in the near term and we will see positive growth by the end of the year," Bernanke told the Joint Economic Committee. More »
—>Some PR person just sent us a notice about a new wallet-sized iPhone stand, which reminded us that there's an easy and free alternative, and it most probably works for a lot of other (fairly thin) media devices as well. More »
—>The number of banks that will need more capital has grown. Now it looks more like 10 banks that underwent the government stress-tests are undercapitalized, possibly among them Wells Fargo, Bank of America, Citigroup and some regional banks, reports WSJ. The good news seems to be that the problems the stress tests are revealing aren't as bad as analysts had been saying. Clearing out some of that fear contributed to Monday market gains and the S&P 500 entered positive territory for the year for the first time in months. More »
It looks like greeting cards are another thing we're cutting back on lately; American Greetings has announced that sales fell 14 percent in the last quarter. [Associated Press] More »
—>Sure, I use coupons, and I'm decent at it, but for me watching this video of the "Coupon Queen" is like a little kid enrolled in her first karate class watching an expert ninja. More »
—>For all the financial news of doom and gloom, the Money Crashers blog reminds us that not everyone is hit hard. In fact, they say that for every person struggling right now, there are a majority of people who are doing just fine in this economic climate (note: no data is presented for this claim, but it does sound at least directionally correct). As such, they list five money-related tips for those out there who are not struggling in this recession as follows: More »
—>For some reason, the New York Yankees are having trouble selling the most expensive seats in the new Yankee Stadium. Especially the ones in the front rows that are noticeably empty on TV. The New York Times has a rundown of the pricing changes. More »
—>What happens when you mix a chicken promotion, a national ad buy, and a franchisee not taking part in the promotion? You get a lot of hungry and annoyed people. And, last Thursday in Minneapolis, you have to call the police. More »
—>Hey, guess what? The economy really sucks. The GDP dropped 6.1% annually, after plunging more than expected in the past few months. How much more than expected? Well, it's the worst six month drop since 1957-58. More »
—>There's good news in the housing market... sort of. For the first time in 25 months, housing price declines failed to set a new record. Whether or not this means that we're reaching the bottom — no one can really say. More »
—>The recession continues to rot America's cultural core, this time by attacking one of our most cherished traditions: prom. Gone are the ice sculptures and $1,000 dresses. America's children are now buying dresses off racks and trading limos for the family car. Imagine! More »
—>Several Popeyes Chicken restaurants in the Rochester, NY area were overrun with customers responding to an offer of eight pieces for $4.99. The restaurants actually ran out of chicken and had to turn hungry customers away. More »
—>Let's pause a moment to consider this sentence from Crain's Chicago Business. "On the same day the Chicago Tribune cut 53 jobs from its newsroom, its parent Tribune Co. asked a Bankruptcy Court to approve of $13.3 million in bonuses and other incentive payments to 703 employees."More »
—>We were fascinated to discover today that Walt Disney reused animation cycles across different movies—the characters are unique (sorta) but the motions are cel for cel copies. It looks like the movies that reuse animation are from that infamous era in the 70s and 80s when Disney's animation unit cut too many corners and churned out less "classic" fare. Well, they were copying classics—shouldn't that count for something? Video clip below. More »
—>Asking for a discount. Negotiating for a better price. Haggling. No matter what you call it, the concept is the same: working to get a seller to let you pay a lower price for a good or service than what was initially offered. The Digerati Life encourages shoppers to negotiate on price and offers the following tips (including a story about getting a discount at Home Depot) to make the most of the process: More »
—>They say recessions are good times for innovation and a time to start your own business, and Justin Esch and Dave Lefkow are proving both true with their invention, Bacon Salt. Building from the simple idea that "everything should taste like bacon," these two entrepreneurs quit their successful tech jobs and started their alchemical project out of their garage. By showing up at sporting events dressed as bacon and using Facebook and Twitter, they racked up 800 orders in the first week and sold out of Bacon Salt in 6 days. An inspiration for anyone with the entrepreneurial desire sizzling inside them. More »
—>General Motors is projected to default on its next bond payment—the last before the June 1st government-imposed restructuring deadline. Next freeway exit: bankruptcy. More »
—>Getting slayed by your bills? Gizmodo has a good roundup of how to save money by ditching your landline and tv, and renegotiating your monthly service rates. It's recap and refresher for expert Consumerist readers, but a nice compendium of tactics that can get you started saving money today. More »
—>It doesn't involve ninjas, but the "shadow" banking system is an important part of the US economy, it's the companies that loan money but aren't themselves banks. The loans they make aren't kept on the companies books, they're securitized and resold as bonds. White whiteboard and magic marker, Marketplace Senior Editor Paddy Hirsch argues this shadow banking system deserves it own bailout. More »
—>Contrarian economist Nouriel Roubini — nicknamed "Dr. Doom" because he predicted the global economic collapse long before it happened — sat down with the editors of Consumer Reports for a lengthy interview recently, and shared his thoughts about what's next. More »
—>A report from New York investment firm Sanford Bernstein says that Best Buy will be eliminating 1,000 assistant manager positions and demoting 8,000 senior sales associates to regular sales positions that would pay 25 percent to 50 percent less than their current salary — causing some to compare them to Circuit City. More »
—>Repossessing cars is so old-fashioned. All that driving, locating people's houses, towing the cars away... with the mess credit markets are currently in, who has time for that? Car lenders don't. More »
—>Officially, the unemployment rate is 8.5%, but that's just part of the picture. It doesn't count those who have given up looking for work, or those who are working part-time when they'd rather be working full-time. The real unemployment rate may be closer to 15.6%, according to the Bureau of Labor Statistics. Yikes. More »
Will The Great Recession dissolve our system of symbols and affluence and remake America into a classless society? Nah, not only would that be boring, but it's impossible. A river with less water is still a river. Speaking of conspicuous consumption and water, here's what Paul Fussel, snarky author of Class: A Guide Through the American Status System, says about cruise ships: More »
—>Grab your nearest economist and hold them tight, prices are falling. The Labor Department says that the obsessed-over Consumer Price Index fell 0.4 percent for the year — the first annual drop since 1955. More »
—>Starting tomorrow, Virgin Mobile will offer all customers who sign up for $30 or more post-paid plans coverage under their free Pink Slip program, which means if you get laid off and can provide proof, they'll pay your cellphone bill for three months, and you won't have to put a Skype number on your resume. More »
—>Just when we thought we saw a light at the end of the tunnel, retail sales dropped "unexpectedly" in March after a three month period of growth. Why is this bad? Because it makes economists worry about deflation. More »
—>When Dean Health System in Madison, Wisconsin announced last week that it "planned to 'immediately' lay off 90 employees," it wasn't kidding around. One of them was a nurse who was pulled out of surgery to be told the news. More »
—>You guys are some thrifty freakazoids. We asked you to submit your money-saving secrets and you dumped like 35 elephants on our heads in comments and emails. We've trimmed that down to 112 . Here they are! Enjoy your savings. More »
—>It's no surprise that a popular purveyor of work-suitable vestments suck lowered a reader's friend's store credit-card limit, but to go from $1000 to $100, that's cold, Banana Republic. Danielle writes: More »
—>Rosemary writes that Bank of America just increased the interest rates on her two credit cards by 12% and 15% because the balances were too high, after slashing the credit limits on both cards a month before. She's frustrated, of course, but like everyone else who's been hit with these increasing fees, she's sort of stuck with their decision. But Mary Schwager at Examiner.com suggests you try placing your account on hold for six months or so, at which point your creditor may be less terrified of the economy and willing to work with you. More »
—>I saw this crowd outside the Jamba Juice on 3rd Ave and 61st today. They're hiring. The job applicants stretched around the corner and down the block. At peak lunch time, there were only three customer inside. That's pretty much the economy in a nutshell smoothie right there. More »
—>So the latest solution to the problem of these toxic assets on the banks' books is a "public-private partnership" between the government and the private sector...yawn what is he going on about, I wish I had a pancake...oh wait! Here's Paddy Hirsch from marketplace drawing stick figures on a whiteboard and explaining it all. Now we're talking. More »
—>You're cut off! JPMorgan Chase and Citi announced they'll no longer accept mortgages submitted by mortgage brokers. The move seems to be a way for the banks to exercise more control over the loans they undertake. At first blush, this sounds like a good thing, for banks to be looking their borrowers in the eye, a throwback to the days when credit was earned instead of splooged out like candy in a parade (days epitomized in this 1950's short, "The Wise Use of Credit," posted inside...) On the other hand, it could be more just a way to snag market share and shut out the competition, which can lead to higher interest rates, borrowing costs, fees, and lower service. More »
WHAT THEY SAID: "We are undertaking an unprecedented and concerted fiscal expansion, which will save or create millions of jobs which would otherwise have been destroyed, and that will, by the end of next year, amount to $5 trillion, raise output by 4 percent and accelerate the transition to a green economy." More »
—>Some stores—like A&P Supermarkets and Bed Bath & Beyond, for example—seem to have a sort of antagonism against coupon users. (For that matter, some of our commenters do too, but they are wrong.) Steve Gosset notes on his "Reality Bites Back" blog that the shortsighted coupon policies at these two stores only ended up costing them more fees, or even a sale. More »
—>Think you're already a savvy shopper and smart saver? Well here's a way to spend even less: don't touch. A new study shows that if you touch stuff when you're shopping, it increases your sense of ownership and makes you more willing to pay more for it. Here's how the study came to that conclusion: More »
—>Fannie Mae and Freddie Mac can foreclose on people's houses again. There was much fanfare when they were banned from doing so back in December, but not a peep on March 31st when the moratorium ended. Funny, that. [The Washington Independent] (Photo: Colin Tobin) More »
—>Via U.S. PIRG, we came across this AP article on the enormous fees that businesses are charging consumers. After noting how much Americans pay in unnecessary fees (e.g., $14.6 billion in credit card fees last year), the author lists twenty easily trimmed fees. Our favorites, inside. More »
Mortgage rates are at a record low of 4.78%, according to Freddie Mac. [Bloomberg] More »
—>Rather than some secret barometer of the economy's resilience, the real reason why no one has returned a car yet under the Hyundai Assurance Program is that you have to make at least two payments before you can return a car. Also, you must first miss three payments, so the earliest you would start to see returns is Mayish. Yeah, that makes a lot more sense than the armchair social economics crap I was coming up with. (Thanks to readers kman and Dennis!) (Photo: popofatticus) More »
—>Not to be outdone by Hyundai, if you buy a Ford and lose your job, the car-maker announced they'll make your payments for up to a year, up to $700 per month. President Mark Fields released a video about the "Ford Advantage Plan" on YouTube. Take a shot every time he says "confidence." GM is supposed to announce their own version this morning, says Kicking Tires. UPDATE: And here it is. More »
The website freeshipping.org has launched a new blog named "Go Frugal," aimed at helping consumers find ways to save money. [Go Frugal] More »
—>There's been a big stink about how AIG has given a bunch of taxpayer money to other banks. Why why why, demand the American people. Well, it's not like they enjoy shoveling money out the door, wait, scratch that, but anyway, the real reason is because of something called "collateral calls." Marketplace's Paddy Hirsch explains the situation with the help of his friends Mr. Magic Marker and Mrs. White Board in this video. More »
—>eHarmony says they've noticed their site traffic increases on days when the Dow drops by more than 100 points. I guess add them to auto parts stores as another counter-cyclical investment. [Economist] (Photo: andronicusmax) More »
—>Love deal site FatWallet but don't feel like ragpicking through forum post after forum post? If so, check out their new coupon search function which arranges deals and coupons in a very easy-to-read, and Retail-me-not-esque fashion. If not, you may now return to your regularly scheduled animated smiling faces and OP attacks. More »
—>You can put down your pitchforks, NY AG Cuomo told reporters this afternoon that most of the AIG big bonus receivers had agreed to return their bonuses. 9 of the top 10 bonus recipients, and 10 of the 15 bonus recipients in the infamous financial products services division, will return their monies. The holdouts were mainly overseas workers and those outside NY jurisdiction. The total remittance comes to about $30 million. Great, can we get back to fixing the economy now? Thanks. More »
—>Markets jumped after the Treasury presented the fleshed-out details of its plan to buy troubled bank assets. The need for getting toxic assets off bank books has been around for quite some time, but has stalled because banks and investors couldn't compromise on the price. Banks didn't want to sell for less than 60 cents on the dollar, investors didn't want to pay more than 30. The Treasury plan makes the two ends meet by providing $75-$100 billion in financing for buyers. For it to work, private investors will have to step up, but with the S&P leaping up 7.1% the street is betting they will and it will unclog the credit markets. More »
—>Shampooing every day isn't only wasteful, it can also harm your hair, according to NPR. Back in the olden days, when waterfalls passed for high-pressure showers, people would shampoo only once a month. That wasn't enough, but if you shampoo more than three times a week, you're actually making your hair oilier because your glands need to work overtime to replace the natural oils you're washing away. More »
—>Via Gawker: Considering the profound social unrest surrounding just about every aspect of their entire existence, AIG disseminated the following memo to their staffers to help them avoid getting hoisted by their necktie the nearest lamppost. More »
—>Work suits starting to look a little shabby? Wishing that that cool worn-in jeans look applied to trousers? One men's clothier is sick and tired of men cutting back on buying suits because of the economy — so they're promising to refund a portion of the money you spent on the suit if you lose your job. More »
—>Stocks surged today after the Fed said it would buy $300 billion in longterm Treasurys and hundreds of billions of mortgage-backed securities. Effectively, it's like an interest rate cut, or printing more money. By increasing the amount of money in the system, banks will be able to borrow more cheaply and could prompt lower mortgage rates and more lending. Remember when we told you what "quantitative easing" was? This is it, folks, and it's big. More »
—>A photographic tour of the recession, as told through 35 depressing photos! Here's one of a hotel manager kicking in the door on a soon-to-be ex-tenant. The caption on the Getty photo by John Moore reads, "The tenant said that he was laid off from his job in a retail store two months ago and had fallen behind on his rent payments at the low-budget hotel." More »
—>You know, we hesitate to use the term "fire sale" to describe airline prices but there are apparently some insane deals to be had right now according to the San Francisco Chronicle More »
If you were recently laid off, you can get a free FranklinCovey day planner this Saturday, March 21st, by showing up at a participating store and giving the name of your former employer and the date you were let go. [FranklinPlanner.com] (Thanks to Anne!)More »
Newspaper Death Watch:The 146-year-old Seattle Post-Intelligencer will stop publishing after today and will become an online only publication with about 20 reporters and editors. [MSNBC] More »
There was an unexpected rise in new housing construction in February— fueled by an 82% jump in the construction of new apartment buildings. We suppose people have to live somewhere, right? [MarketWatch] More »
—>Ever notice how most of the people bitching the hardest about the recession are old people? Here's an alternative view, and how the economic meltdown might just be the best thing ever if you're under 35, have a job, and aren't strapped with debt. [MSN] (Photo: hanapbuhay) More »
—>Buddy, can you spare 1.144 Quadrillion dollars? Based on one analysis, that's the total size of the global derivatives market right now, equivalent to $190,000 for every person on the planet. (A derivative is an investment whose value comes from, or "derives," from another investment, like stocks, credit, or home mortgages...) If you'd like to learn more about derivatives and become frightened by them, check this article out. For further comparison, here's what the Sears Tower looks like, as dwarfed by a cube of 1 quadrillion pennies. More »
—>So like I said I got $120 from the Penny Arcade this weekend, but I was far from alone. Here is the crappy cellphone picture I took of the line. All those people on the right (plus the dog) are waiting for their turn at the spare change counting machine. More »
—>Yesterday was coin-jar payout day for me. I got $120! Woohoo! And since I took my can to the Penny Arcade at TD Bank, formerly Commerce Bank, they counted my change for free, unlike the Coinstars in supermarkets. Perversely, the past few weeks as my coin jar got close to full , I started to really look forward to getting change, to the extent I started to develop some irrational behavior... More »
—>Rising unemployment is exacerbating the already critical foreclosure crisis, because sadly, while you can return your Hyundai if you lose your income — you're kinda stuck with that 4 bedroom ranch with the in-ground pool. More »
—>Whatever happened to developing an emergency fund to cover rainy day expenses? Apparently many Americans haven't heard of this practice (or at least aren't applying it) and now with the economy in the tanker, their financial lives are hanging by a thread. US News reports that half of Americans are two paychecks away from hardship. More »
The worst unemployment rate in more than 25 years has started to affect Staples. Lower demand for computers and furniture has lead to a 14% drop in profit. [CNNMoney] More »
—>Senators Durbin and Schumer today proposed making a "Financial Product Safety Commission." (an idea originally put out there by the super-awesome Elizabeth Warren 2 years ago). Shumer likened it to the Wild West days of medicine in the 1900s when snakeoil got peddled from street corners and magazines, saying, "Those who sell quack financial products in the 21st century" should be "reined in, not with disclosure, but with real limits." If it comes to fruition, hopefully unlike other government protection agencies it will be staffed by consumer advocates instead of industry insiders. More »
Is your hedge fund in dire financial straits? Are you totally screwed and now realizing that someone has to take the fall? Has your ponzi scheme enveloped numerous celebrity-endorsed charities benefiting Laotian children with AIDS and been discovered by the SEC? More »
—>See, here's some good news to the wallet-gouging gas prices of 2008: ridership of public transportation was up to 10.7 billion trips last year, "the highest level of ridership in 52 years" according to the American Public Transportation Association. It was the fifth consecutive year that ridership increased, but it may come to an end in 2009 because of skyrocketing unemployment. More »
—>Here's what you can expect from a nationalized Citibank, courtesy of Funny or Die. NSFW warning: this thing is full of f-bombs, and even an r-mine. (Full video after the jump.) More »
McDonald's: Sales Of Cheap Food Are Up Our 8.1% unemployment rate has helped sales of value meals, chicken sandwiches and Egg McMuffins says McDonald's. Their same store sales grew by 2.8 percent in the US. [Bloomberg] More »
—>Harsh chemicals aren't just bad for you and the environment, they're bad for your wallet too. Cleaning most things, from clothes to your kitchen, can be done greenly and cheaply with these six nifty do-it-yourself cleaning recipes from Consumer Reports... More »
Economy Hemorrhaging Jobs. The nation's unemployment rate climbed above 8 percent last month and the economy shed 651,000 jobs, says the Bureau of Labor Statistics. It's the highest rate in 25 years, with 12.5 million unemployed. [WaPo] More »
—>Someone wrote to us this week that a person in his family is terminally ill, and that he was told "that the cost of the casket, funeral, viewing, and burial would possibly exceed 12,000 dollars." He thinks that's an "exorbitant amount of money," and so do we. There is no reason to pay that much money for a kick-ass funeral that people will be talking about for years to come. You don't need to be a cheapskate to manage this, either—you just need to be aware of your rights and know what traps to watch out for. Here's our list of what to do the next time you have to plan a funeral. More »
The Huffington Post (yeah, yeah) suggested: An episode of Family Guy on iTunes, Starbucks coffee, and a bag of peanut M&M's. (Dead animal free, we hope.) More »
Walmart continues to see its same store sales grow as people trade down from more expensive stores. Meanwhile, Macy's, Kohl's and Nordstrom are all hurting. [CNNMoney] More »
—>Here's your daily depressing mortgage news — as employers shed jobs mortgage delinquencies are rising — intensifying and spreading the mortgage crisis. More »
—>If you have any lines of credit and you use them to manage your financial flow, you should evaluate your personal money matrix so you're ready in case all of them get cut. They're cutting lines of credit even for rocket scientists like reader Rocky. That's right, he's an engineer in the aerospace industry, has never overdrawn, never been late, never incurred NSF charges, and has 3 Masters and 2 MBAs. Overnight, they cut his four lines of credit. Apparently his only crime was simply having them. He called multiple times and got nowhere, only to be told to talk to a credit counselor. A credit counselor? Bank of America, he doesn't have bad credit, he has no lines of credit because you just cut them all. His story, inside... More »
—>Anyone had enough bad news lately about the economy? Layoffs, the stock market diving, bailouts, government debt, the housing crisis — all of it can add up to some pretty somber feelings. And the fact that it's been going on for awhile now can drag anyone down. We're not going totally Pollyanna on you, but we do share the sentiments of the Wall Street Journal that maybe we should stop complaining and be a bit thankful. Turns out that doing so could put you in the middle of a growing trend: More »
—>The Savvy Networker has 10 ways to ruin a job interview. Most of these are kind of obvious but maybe by reading it you can catch yourself if you start to do any of them without thinking about it. Also, it's kind of fun to imagine someone doing them, like #10: Doing anything disgusting: "One candidate asked me for a cup of water, took a sip, swished it around in his mouth, and spat into a potted plant." More »
—>Yes, today is the day. Starbucks will begin servings its new line of "breakfast pairings" (don't call them value meals!). For $3.95 you shall receive coffee and an egg sandwich, oatmeal or coffee cake. It's all part of Starbucks' latest effort to rid themselves of the perception that they are overpriced — which is probably going to be kinda difficult. More »
—>Reader Zach's Xbox 360 just suffered its second Red Ring of Death. He dutifully called up Microsoft customer support to get a shipping box to mail his Xbox in for repairs, and instead was told he'd need to find his own box and ship it himself. More »
—>WeSeed directed us to this sad photo album of cars backed up at ports and manufacturer lots around the world. Maybe they can be handed out in clusters as executive bonuses at the end of the year. More »
—>The rumor was true—T-Mobile has started offering cheaper unlimited voice plans to existing customers. Matthew wrote to us, "The TMO loyalty plans are showing up on the site as of today...we just moved to the Unlimited Loyalty Family Plan at $89.99, which is $10 cheaper than the 2000 minute Family Plan we'd been on." More »
—>The government is taking steps to revamp the AIG bailout, after the company lost a mindbogglingly huge amount of money, $62 billion, in a single quarter. More »
—>Meet John Eller. Five years ago, he was a Sprint executive earning $150,000 for managing 7,000 employees at 13 call centers. Today, he's a grocery store baker making $10 an hour. The Times tells us he's not the only former executive now working for minimum wage. More »
The GDP dropped 6.2% in the fourth quarter, the largest drop since 1982. Reuters says that a month ago the Commerce Department estimated that the economy shrank at a 3.8 percent pace in the October-December quarter. Whoopsies! [Reuters] More »
—>CNN Money has put together a couple of quick interactive maps of the U.S. that let you see the bank failure rates and foreclosure rates for each state. According to these two maps, Wyoming is the place to be. More »
—>What happens to all the stuff left inside a foreclosed house when the ex-owners jet? The bank contracts these guys to haul it all away to the dump in what is called a "trash out." Here's a short video following a crew of junk chuckers. It's amazing what people leave behind, including photos and computers. More »
—>Consumers are cutting back — and the AP says that shoppers are abandoning Target for even cheaper stores. In addition, Target's credit card division is running into trouble as shell-shocked shoppers aren't able to pay their bills. More »
—>The consumer confidence index plunged to 25 in Feb., down from 37.4 in Jan. Many economists only predicted it would fall to 35. The index is based on a monthly survey of 5,000 households, responding "positive", "negative" or "neutral" to five questions about how they feel about certain economic conditions. A decline means people are going to be spending less. Here's a more specific breakdown of how people responded to the specific questions: More »
—>You know how Merrill Lynch recently lost $15 billion? Remember how we're in a unbelievably huge global financial crisis that threatens to unravel the fabric of our economy? John Thain says that's no reason not to pay billions of dollars in bonuses. More »
What the hell? Even people who make CANNED SOUP are hurting. [Bloomberg] More »
—>Hey, Wall Street failures, have you considered an exciting new career as a document shredder? How about working as a butler? Ok, ok. Would you work as a clown? Seriously! According to the Times, it's a perfectly valid "career option" for washed up investment bankers. "Even sad clowns are a hoot at a birthday party." And the Times is full of other helpful suggestions... More »
—>U.S. Bancorp CEO Richard Davis took shotgun blasts to the TARP program for being a fat big lie. "We were told to take it so that we could help Darwin synthesize the weaker banks and acquire those and put them under different leadership," Davis said. OMG - truth alert! More »
—>This a freakin' awesome cartoon that explains how the credit crisis began, played out, and exploded in our face. I know you've seen and heard a million of these by now, but this one is highly visually engaging and entertaining, enough so I could see it being used in the classroom and kids not getting (too) bored. Graphic designer Jonathan Jarvis. Especially good is how it explains leverage. More »
—>Wondering why Sprint CEO Dan Hesse has time to wander around NYC telling people about Sprint products? Well, it's apparently come to that. Sprint has lost another 1.1 million customers. More »
—>As pretty much every retailer imaginable aside from Walmart loses money — one chain is not only doing fine, it's actually growing — GameStop. It seems that when the going gets tough — people just want to play video games. More »
—>New York City Mayor Michael Bloomberg wants to spend $45 million in government money retraining investment bankers, brokers and others who have lost jobs on Wall Street, says the New York Times.More »
—>With the economic stimulus (or "e-stim," as we've been calling it) signed into law, President Obama turns his attention to the foreclosure crisis. At an event in Arizona today, he announced the following proposals to help homeowners. More »
—>We've written about this before, but as more and more people face foreclosure (last year's foreclosures totaled 2.3 million, according to the AP) its a good time to remind people of this strategy. More »
Smithfield, the world's biggest pork processor, will close 6 plants and lay off 1,800. I know saying that every little thing is a sign of the apocalypse is a horrible cliche, but I know something about the topic, and when you can't make money selling bacon we're all in trouble. [Bloomberg] More »
—>Afraid you might get laid off? Too worried to book plane tickets? JetBlue thinks you are. They've launched a program that guarantees a full refund to those of you who get laid off at least two weeks before you fly. More »
Tonight at 9 eastern Frontline's new documentary "Inside The Meltdown" will debut on PBS and online. We've only seen the trailer, but the press release makes it sound like the scariest documentary in the history of the universe. More »
—>If you aren't planning on getting a big loan in the next couple of years, you probably shouldn't be worried about your credit score right? Wrong. More »
—>In case you haven't noticed, we're in the midst of an economic slump where it seems like thousands of jobs are being lost every day. Ok, maybe that's because thousands of jobs are being lost every day. This brings up an issue that more and more of us will be facing in the future: how should you talk to a close friend or relative that loses his job? Career blogger Penelope Trunk suggests the following seven steps: More »
—>After six months of going down, retail sales ticked upwards by 1% in January as stores cut back prices and offered freebies and BOGOs and even BOGTs to move backlogged inventory. [NYT] (Photo: j_bary) More »
—>Starbucks announced today that they will be laying off 870 assistant store managers and not filling 530 vacant positions. In addition, 500 non-store positions will also be eliminated. Read the memo inside. More »
—>Did you know that private jets are actually quite practical? We didn't. The Wall Street Journal says that private jet manufacturers are angry at the backlash against private jets and are speaking out to "counter business aircraft misinformation." More »
—>NPR's Planet Money blog alerts us to the existence of a statistic called the "quits" rate — which, you guessed it, monitors how many people are quitting their jobs. You'll be shocked to hear that for months the quits rate has been at the lowest point since the Bureau of Labor Statistics started tracking it. More »
Senate approves $838 billion economic stimulus bill 61 to 37. C-Span says three Republicans broke ranks to vote for it: Senators Susan Collins, Olympia Snowe, and Arlen Specter. More »
—>Our eyes shoot fire when stores make their poor employees harass us about opening a store card, so we're feeling a perverse sense of joy at the news that store cards are turning into a nightmare for retailers. More »
—>Obama is giving a press conference right now, mainly about the stimulus package. Here are the highlights, none of which are earth-shattering: More »
Want to know what the latest version of the stimulus package looks like? "We've trimmed the fat, fried the bacon, and milked the sacred cows," Sen. Ben Nelson said in a statement. [Consumer Reports] More »
—>Pennysylvania's unemployed are getting nickled-and-dimed by pre-loaded unemployment benefit debit cards that come come pre-loaded with hidden fees. More »
—>Capital One apparently believes in "honest and open communications" (even though they've been accused of purposefully dicking their customers around in the hopes of generating more fees). How do we know this? Because they've written their "valuable customers like you" letters letting you know that due to "extraordinary changes in the economic environment," everyone needs to pay a little more interest. Don't worry, you haven't done anything wrong. That's just the Capital One honesty you're feeling. Read the letter inside. More »
Nissan will cut 20,000 jobs as US sales plunged 31%. "Our worst assumptions on the state of the global economy have been met or exceeded," said Chief Executive Officer Carlos Ghosn. [Bloomberg] More »
—>Nancy Pelosi wants to scare the crap out of you, so her office has released the above scary graph, which we bring to you by way of Time's Swampland blog.More »
—>Bank of America's stock slid to a 20 year low today as investors became increasingly convinced that the bank would be nationalized. Share tumbled 18% early today, before climbing back up in the afternoon, says CNNMoney. More »
You can now get unemployment insurance for your vacation. How depressing. [MSNBC] More »
626,000 people filed for unemployment benefits last week. The number of people on unemployment rose to 4.8 million, the highest since records started being kept. [AP] More »
The January 30th episode of This American Life features some interesting thoughts on John Maynard Keynes and the inevitability of putting his controversial theories to the test, whether we want to or not. [This American Life] More »
—>The New York Times says there are about 1,500 malls in the US and many of them are in trouble. They're being converted to office buildings or closing their doors for good. And yet, Minnesota's Mall of America is allegedly doing fine. More »
—>One buzzphrase going around about the financial crisis is "mark to market." Some think banks are being overly punished by being forced to "mark to market" the investments they own, or price them according to current market value. As you can probably figure out, those assets have plummeted. Marketplace's Paddy Hirsch explains with his trusty whiteboard and stick figures what "mark to market" means, and what it means for the economy. More »
—>Here's some depressing news — not even rental car companies — the largest purchasers of automobiles, are buying cars this year, says CNNMoney.More »
—>Starbucks is closing an additional 300 stores, says the Seattle Times, and will eliminate 700 non-store and 6,000 store jobs. The store closings will save the company $500 million per year. Meanwhile, the company is trying to sell a fancy corporate jet it bought last month for $45 million. Read CEO Howard Schultz's memo to employees inside. More »
—>Macy's is slaying 7,000 positions from its payrolls. No news about any store closing so far. Things are not looking good for retail stores with large stores in the physical universe these days. Economy = asteroid, creating large dust cloud over planet so the sources of food for the dinosaurs dries up, which is very sad for the massive reptiles, but then it creates space on the food chain for small furry mammals to thrive. Cockroaches, too, though. [Marketwatch] (Photo: u2acro) More »
Barbie may have to move out of the dream house or whatever — sales are down 9% and Mattel is hurting. [Bizjournals] More »
—>Consumer spending has fallen for a record 6 straight months in December, the worst since 1961. By all accounts, it's slated to keep falling for more to come. Incomes fell for three straight months, the worst since 1954. On the plus side, consumer savings increased to 3.6% of their paychecks. Spending less and saving more, sounds like the frugality mantra is catching on. It means fewer jobs for dog-walkers in the short term but a healthier base for future growth down the road. [Bloomberg] (Photo: nsub1) More »
—>Of course you'll be watching Ben liveblog the commercials tonight, but from where will you be watching? The L.A. Times tells us that Super Bowl parties are the latest victim of the financial godzilla angrily stomping down our spendthrift ways. Take a minute tonight between Ben's updates to look around and ask yourself if there was more guacamole to spread around last year. More »
—>Despite sending customers letter saying otherwise, American Express now insists that it never blacklisted cardholders based on where they shopped. Those notes explaining that "other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express?" Whoops! Just a big misunderstanding! Not unlike the comment they gave to ABC explaining that "shopping patterns" were used as a "contributing factor" in slashing credit lines, a statement AmEx later retracted. So what's really going on? Let's explore... More »
—>Yes, we're saying the "D" word. Now that we've officially entered a recession — it's time to wonder if we're in a depression. We'd love to be able to give you a yes or no answer, but according to Marketplace's personal finance guy, Chris Farrell, nobody agrees about what makes a depression different from a recession. More »
The economy might be in a tailspin, but Amazon.com is doing just fine. "Amazon’s net profit rose 9 percent, to $225 million, or 52 cents a share, in the quarter that ended on Dec. 31, up from $207 million, or 48 cents, in the same quarter a year earlier," says the New York Times.More »
—>A $3 billion deficit and expected losses of $6 billion more have led the Postmaster General to suggest cutting mail delivery from six to five days. More »
Exxon has set another record for profitability, with $45.2 billion in 2008, up from $40.6 billion in 2007. As prices fell in the fourth quarter, however, Exxon's income fell 33 percent. [NYT] More »
—>A Consumerist reader and property manager in Virginia posted a notice for a part-time evening receptionist, and in response to the 12-hour a week job, she got 3520 emails. Roberta writes, "The attached picture was my email in-box this morning, with 0 spam emails and 0 non-Craigslist emails. 3520 (and climbing as we speak)..." Perhaps this can become a new metric to gauge how bad the employment situation is, how many resumes a 12-hour receptionist-job posting on Craigslist receives in a 24-hour period. More »
Here are 9 companies that have never had a layoff. Will they be able to maintain the streak? And perhaps more importantly, are they hiring? [Fortune] (Thanks to harisn)More »
Save money by polishing your shoes with a banana. Monkeys have been doing it for millennia. [Huffington Post] (Thanks to daveburdick !)More »
—>Sales of existing homes are up, which sounds like good news — except that if you really look at what is going on — it's really sort of bleak. About half of all home sales in December were foreclosures, says Marketplace, where the house is sold for less than what is owed on the mortgage. More »
—>If you're looking for a job these days, you know how tough it can be to separate yourself from the pack. One key is being sure your resume is as good as it can be — that it sells your skills in full force to make you stand out. But US News says that there are five resume mistakes that most job hunters are making, mistakes that are killing their chances of making it to the next step (getting an interview). Of those five, we think this one is the most egregious: your résumé has no numbers, as in, measurable accomplishments... More »
Here's a resource to help you determine whether your library lends digital media such as audiobooks and ebooks. It also helps you locate other libraries that offer digital lending. [Overdrive] (Thanks to jojo319!)More »
Over 71,400 jobs were cut today, bringing the total jobs cut this year to over 200,000. CNN Money has a list of what's been lost in 2009 so far. [CNN Money] (Thanks to Olevia!) (Photo: bbaunach) More »
—>Home Depot will close 34 "Expo Design Center" stores as the demand for massively overpriced toilets and light fixtures appears to be waning. Actually, never mind... Home Depot says that Expo was always a failure. "Even during the recent housing boom, it was not a strong business," they said. More »
Sprint will cut a total of 8,000 jobs by March 31st, says CEO Dan Hesse, who enjoys being filmed in black and white as he takes long walks toward cameras. Sprint is also suspending its 401(k) match program, tuition reimbursement program, and is freezing salaries. [CNNMoney] More »
—>Richard O'Connor, the Vice President of Marketing for Aetna, might want to rethink how his department handles its customer retention program in this economy, particularly when it comes to telling people that they're still valued even though they've been let go. Chris received just such a letter today, and now the VP of his company's HR department is trying to figure out why Aetna fired Chris. More »
—>Regarding the $35,000 "commode on legs" ex-Merrill-Lynch CEO John Thain bought for his office, commenter VikramJaffe informs me that it is not as I theorized, a claw-footed toilet, but rather a chest of drawers on legs introduced by the French in the early 18th century. Too bad no one informed me of the distinction before I took a crap in it. More »
—>If you're a frequent business traveler your life is probably getting less and less plush as the economic disaster continues. Hotels say that they are cutting small amenities such as hand lotion, coffee, extra towels and buffet breakfasts in order to save money. More »
To fix the economy, the Fed needs to lower interest rates below zero. Trouble is, that's impossible. [Business Week] More »
—>Merrill Lynch CEO John Thain spent over $1.22 million to renovate his office in early 2008, just as his firm was getting ready to slash thousands of jobs, cut back on spending and dump businesses. Here's this douchebag's big-ticket tally of personal aggrandizement in the midst of financial crisis: More »
—>People are cutting back from outsourced services and opting to do things themselves, like cleaning the house, walking the dog, making their own coffee, cutting their hair, or packing their lunch. Those who do say it saves money and gives a feeling of self-reliance. What have you started doing yourself lately that you used to pay people to do? More »
Hope didn't save the stock market..."The Dow Jones Industrial Average dropped 332.13 points, or 4%, to 7949.09. The index was hurt by declines in all its financial components. Bank of America fell 29% and J.P. Morgan Chase fell 21%. Citigroup declined 20%." [WSJ] More »
—>Marketplace's Paddy "Sexycakes" Hirsch whips out the whiteboard to explain the how and why of the latest gimmick the Fed is deploying to ease the financial crisis. Now they're making "bad banks" which will go buy the toxic assets from the banks so they can clean up their books. Hopefully over time these assets will mature past their heavily discounted value and the taxpayers can make money on the deal. But if the situation deteriorates and too many of the assets go to zero, as some indeed may, then we'll be sitting on a big fat goose egg, again. Video inside. More »
—>Companies are scrambling to make their products seem more affordable in this economic climate, and, in some cases, are resorting to simply making it up. Reader Ben sent in this picture of Personna razor blades. The old pack is on the left, containing 12 razors. The new one is on the right, also containing 12 razors, but it boasts a scratched out 10 and a big 12 and now it's a "Value Pack." You get the same number of razors, pay the same, but now you get the added bonus of feeling like you're a savvy shopper. More »
—>Retailers are hoping that the credit crunch ends and consumers will start spending like crazy again — but Walmart's CEO Lee Scott doesn't think that's going to happen. More »
—> The numbers are in and we lost 2.6 million jobs in 2008, making it the worst year since 1945. How do you picture 2.6 million jobs? Well, by looking at Wisconsin. Or Missouri. Or Maryland. More »
—>Against a a backdrop of cheery balloons, and exclamatory soap opera digest headlines, the signs at this Austin supermarket checkout lines read, "All job fairs have been cancelled until further notice." Sign of the times, perchance? More »
—>Circuit City announced today that it is close to finalizing a deal to sell all or part of its operation to one of two undisclosed potential buyers— but if the deal falls through— the store could be liquidated. More »
“Consumers have clammed up,” said Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio, who forecast a decline. “The reduction in consumer credit doesn’t stop here, and will spill over into 2009. Households are bolstering their balance sheets.” More »
—>There have been a lot of theories about why consumers abruptly stopped buying cars — and not just American cars but all kinds of cars. Fingers have been pointed at poor fuel economy, lack of available financing, and if Hyundai is to be believed — concern about losing your job. But a new survey found that the most popular reason for not buying a new car — is that there's nothing wrong with the old one.More »
—>Remember 1694? No? Well, the Bank of England has cut the benchmark interest rate "to the lowest since the central bank was founded in 1694 as policy makers tried to prevent the credit squeeze from deepening Britain’s recession," says Bloomberg. More »
—>Walmart missed its same store sales estimates (considered the most important barometer for the health of a retail operation) for December — leaving analysts "shocked and disappointed." More »
—>Looks like it's time for Macy's annual closing of the stores! This time it's 11 underperforming locations that will be shuttered, and Macy's says clearance sales will begin at those stores next week. Here's a list of the stores that will be saying goodbye. More »
—>The Wall Street Journal covers a new study that determines the best and worst jobs in America using five criteria: environment, income, employment outlook, physical demands and stress. When all was said and done, all the data weighed and all the experts consulted, one occupation stood head and shoulders above the rest: mathematician. Yep, you read that correctly. Here's why it took the top spot: More »
One thing I’ve certainly learned is that great ideas really do need to start somewhere. If I don’t pull the trigger and take some fliers based on nothing but faith in my own ability, great dreams won’t ever be realized More »
—>You know the economy is bad when 7-Eleven's hiring plans are national news. More »
Seemingly invulnerable Toyota will shut down its Japanese factories for 11 days as it too deals with the global economic slowdown. Previously, the company had been unable to keep up with demand for its fuel efficient cars. [NYT] More »
—>It's a simple question, and a little shocking that we have to ask it. I mean, it's not like Staples specializes in technology or anything. Our tipster was shocked himself when he discovered this curious fact. His full story, inside. More »
—>In its largest ever hiring spree since 9/11, the FBI is hiring 850 new special agents and 2,100 professional support personnel. Maybe they'll catch all those shady mortgage crooksters before they Jenga the system! Oh wait, too late. Next time there's a sub-prime meltdown, though, we'll be ready! [FBIjobs.gov] [CNN] More »
—>Gripped by "catatonic fear," banks still aren't thawing credit markets, "leaving taxpayers propping up an industry that won’t lend to them." [Bloomberg] (Photo: The Joy of the Mundane) More »
—>Want to know a fancy word for printing new money? Meet "Quantitative easing," the Fed's weapon of last resort to try to prod banks to lend to each other and to companies. Marketplace's Paddy Hirsch is back with his whiteboard to explain how it all goes down. Video inside. More »
—>As text message prices continue to increase, we want to remind you that there are many ways to send free text messages online, even from your phone. Wikihow has a great roundup of methods, including using AIM or Gchat, texting as email, or using free text sites. More »
According to Bloomberg, retailers expect to close 73,000 stores in the first half of 2009, because no one bought enough Christmas presents. Thanks, Marc! More »
The Chicago Tribune is reporting that yesterday's post-Christmas sales were lackluster for retailers. We don't know about the rest of you, but we were way too full of eggnog and cookies to actually get up and go shopping. More »
—>Even though real incomes are dropping and people are worrying about their jobs — a drop in gas prices has lead to a push in retail spending, says the New York Times. More »
—>BusinessWeek says that employers around the country are cutting back hours rather than laying people off in response to the recession. It sounds nice at first — until you realize that it sucks. More »
—>In California? Unemployed? The Screen Actors Guild guide to California Unemployment benefits is easier to use than CA's hard to navigate unemployment site, and the advice is general enough to work even for non-thespians. [SAG] More »
—>We are living in difficult times for selling wicker furniture, it seems. Pier 1 lost $36.9 million in the third quarter — and is in danger of being delisted from the NYSE. More »
—>"Best Buy Co. Inc. offered voluntary severance packages to virtually all its 4,000 corporate employees Tuesday as the nation's largest consumer electronics chain announced its third-quarter profit skidded 77 percent," says the AP. [Forbes] More »
—>USAToday says that panic by the credit card industry is squeezing customers who ordinarily would be able to pay their bills — pushing them toward financial ruin and foreclosure. More »
—>Look for next year's movie release schedule to be full of remakes and easy-bets. I spoke with a Hollywood actor who said that the bottom has completely fallen out of the movie market. More »
—>Ever feel like the poor state of the economy is impacting every area of life? Well, it is! A few examples popping up in some surprising places, like animal shelters... More »
Bank of America has announced that it will lay off 30,000-35,000 people as a result of its merger with Merrill Lynch and the economic downturn. [MarketWatch] (Thanks, Dariush!) More »
—>KB Toys has returned to Chapter 11 bankruptcy, says the Wall Street Journal, and will be liquidated by its parent company — Prentice Capital Management. More »
—>Here's a bleak list from Forbes — America's 10 Fastest-Dying Towns. Many of the towns have something in common — manufacturing jobs moving overseas or to cheaper, more rural, areas. More »
—>You know things are bad when Bon Appetit names "peanut butter" as "dessert of the year." Wait 'til you see what fancy restaurants are doing with Hamburger Helper! [Bon Appetit] (Photo: Derek Purdy) More »
—>Here's a sad bit of news, investors are so shaken that they're willing to put their money into Treasury bills — even if it means losing money.More »
—>The good thing about the recession is that everything that is most bloated and cheesy and garish is imploding. Witness:
Harrah's, the McDonald's of casino chains, is in big trouble. So is Claire's. They're owned by the same private equity firm.
Sharper Image, Circuit City, and Linen's n' Things. Suck suck and suck, dead dead and dead.
Those glass condo towers disrupting your nice bo-ho "sweet spot of gentrification" neighborhoods? Building has stopped because they can't get any construction loans.
Gas-gorging SUVs will soon be worth more being turned into the toasters they look like.
What excesses are you glad to see on deathwatch? More »
The Tribune Company, which owns the Chicago Tribune, the LA Times, Wrigley Field and the Chicago Cubs, has filed for bankruptcy. [New York Times] More »
—>Aaron has gotten a busy signal from the Pennsylvania unemployment office call center for a month. He started filing his claim online, which was fine, until he started getting automated emails saying there were problems with the online system, and instructed him to call the toll-free call center number. That's right, the one that's a constant busy signal. So, he got in touch with his local state representative, and got results! More »
—>Everyone's looking to pick up some extra cash these days but be wary of online job postings as many are outright scams. Here's 8 warning signs to look out for: More »
—> Reports of the new "McDouble" replacing the Double Cheeseburger on the McDonald's "Dollar Menu" have started to roll into our inbox. The "McDouble" is a double cheeseburger with only one slice of cheese. More »
—>Reuters says that Blockbuster will begin offering 99 cent rentals for the first time ever, according to CEO Jim Keyes. The details of which movies will be 99 cents have not been announced, but Keyes did say that the price point would include "thousands of DVDs, including many classic older movies." More »
—>Two neighborhoods in Milwaukee are considering printing their own currency, which could be bought with U.S. dollars, but would be only accepted at local businesses, in order to encourage people to shop at home instead of Walmart. More »
—>The waiting area of the New York Department of Labor Office is getting increasingly crowded. It's not just the economy, more people are showing up because they can't get anyone on the phone. More »
—>Tweeter, a MA mid to high-end electronics retailer, and not a misspelling of a popular microblogging service, decided yesterday to close its doors 6 days ahead of schedule, and send home everyone without paying them. Furthermore, customers who have already paid for the merchandise, expecting to be able to come by and pick it up, will have to deal with the liquidators. [BoingBoing Gadgets] (Thanks to Hawkins!) (Photo: dalvenjah) More »
Harvard University's endowment, the largest of any university, has lost 22% of its value in the past year — or approximately $8 billion. Ouch. [MarketWatch] More »
—>Earlier this year when the Sharper Image declared bankruptcy, they briefly stopped accepting gift certificates. Eventually, they did start accepting them again — but with the requirement that consumers buy twice the face value of the card. This, it seems, has caused a fair amount of panic among consumers. Chain emails are circulating warning shoppers not to buy gift cards from various retailers — claiming that they are going out of business. But are they? More »
—>We've been in a recession since December 2007, according to a fancypants stat group. WSJ reports, "In a statement, the National Bureau of Economic Research said its Business Cycle Dating Committee determined that the U.S. entered recession in December 2007, marking the end of the economic expansion that began in November 2001." I don't think Americans need a committee to tell them the economy has been on the express the train to Suck City for over a year... More »
—>If you're looking to refinance a home and have cash and good credit, now is a good time to pull the trigger. Yesterday the government announced the latest Federal golden bandaid: a pledge to inject $800 billion directly into the credit markets, news which pushed national average mortgage rates for a 30 year fixed to 5.81%, down from 6.07%, according to bankrate. Bankrate also suggest that if you're trying to refi to act quickly, before rates rise or home values drop. More »
Look at it this way, yes, housing prices are down by record amounts... but maybe you can get yourself a Black Friday deal on a house? More »
—>You know who is making money despite the total eclipse of your 401k? Campbell Soup Company. That's right. When you're broke — you eat soup. But which soup should you eat? More »
—>There's a new story in Triple Canopy about The Liberty Dollar, an alternative American currency started by Bernard von NotHaus that experienced a grassroots backing among some shoppers and merchants, until the Feds shut it down. Unlike the "real" dollar, Liberty Dollars are in fact... More »
—>If you're looking for a photograph to illustrate how our economy has changed over the past few months, take a look at this. No, that's not a parking lot in a town where everyone has the same taste. It's the Port of Long Beach, where "thousands of cars worth tens of millions of dollars are being warehoused," unwanted by the dealers who used to sell them. They're imports — Mercedes-Benz, Toyota, and Nissan orphans. More »
—>The New York Times City Room blog asks an interesting question. Why doesn't Costco accept food stamps? Even farmers markets accept them! What's the deal, Costco? More »
—>It's cake time at BJ's wholesale clubs as bargain-hunters shop for grocery deals to beat the recession blues. Profits rose 24%. [NYT] (Photo: SyndProd) More »
Retail sales dropped 2.8 % in October. November Consumer Confidence level up .3 points in November from October, 57.6 to 57.9. [Reuters] More »
The recession in the EU might be even deeper than the one in the US. Case in point: Ireland, which thrived off now-dormant construction cranes. [Washington Post] More »
—>The next wave of the credit crisis — the skyrocketing defaults on credit cards — is coming in and odd alliances are being formed. The Consumer Federation of America, along with the Financial Services Roundtable ( a self-described "major player on Capitol Hill and with the regulators" which represents the securities, investment, insurance and banking industries) has requested a "special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans." More »
—>Over at Slate they've realized that the Tom Hanks movie from the 80s "The Money Pit" is actually just a documentary about our current financial crisis and the bailout of AIG. Specifically, the scene in which the kitchen catches fire and the bathtub falls through the floor. (Video, inside...) More »
—>Today Best Buy announced that it was officially freaking out about the current financial meltdown: "In 42 years of retailing, we've never seen such difficult times for the consumer," Brian Dunn, president and chief operating officer of Best Buy, said in a statement. "People are making dramatic changes in how much they spend, and we're not immune from those forces." A Best Buy employee forwarded us an email that went out to all associates this morning — stressing that a renewed commitment to customer service was the way forward during these troubled times. More »
—>Christmas Creep may be more out of control than ever this year (Were Veterans Day sales always Christmas-themed?), but that doesn't mean that these are happy holidays for professional Santas. Yes, according to the Amalgamated Order of Real Bearded Santas, an organization that actually exists according to the Wall Street Journal, Santa bookings are down. Way down. More »
—>No more DHL for you, America. They're cutting 9,500 jobs and suspending domestic mailing operations. This leaves the shipping field back to UPS, FedEX and the USPS. However, you can still ship with DHL internationally from the US, so no need to fret that you can't keep sending those care packages to Cuba and North Korea. More »
—>Circuit City has filed for chapter 11 bankruptcy. According to their press release, this will allow them to undergo corporate restructuring, cut costs, get out of leases and figure out a way to still make a go of it. The stores will continue to operate, and they will seek to still allow for returns, exchanges, and gift cards. More »
—>AAA says that gas prices have fallen for 51 straight days — and that the current average price is $2.31 per gallon. The current price is the lowest the nation has seen since February of 2007, and is 43.8% lower than the record high of $4.11 set during July of this year. More »
—>GM is running out of money and may not have enough cash to continue running its business. They've burned through $6.8 billion in the last quarter and will exhaust their reserves by the end of 2008 without government intervention or a significant increase in auto sales. Which sounds more likely to you? More »
—>Wegmans, an "upscale" grocery chain with stores in 5 Mid-Atlantic states, is cutting prices to stay competitive during the post-Wall-Street apocalypse. More »
Dell is offering employees a week of unpaid leave in order to cut costs. "Dell informed employees of its cost-cutting measures in an e-mail from chief executive Michael Dell. More »
—>Retailers are scared this year, what with the whole economy coming crashing down around their ears and all, and the Black Friday marketing frenzy should be crazier than ever this year. Best Buy is even holding an essay contest. The topic? Why Black Friday shopping is an "important family ritual." Yes, seriously. More »
—>The New York Times has an interesting article today about the rising specter of deflation — in which a lack of demand causes prices to fall. Falling prices sounds like a good thing for consumers who have been battered with rising costs over the past year — but experts agree — deflation is nothing but bad news. More »
—>Free cups of water at McDonald's are the next victim of the recession it seems. Reader Michael sent us this photo of a sign at McDonald's that proclaims the end to the free cup of water era. He says the cashier told him it was a "business decision." More »
—>GDP fell .3% in the 3rd quarter of 2008, compared to 2.8% gain in the second quarter. While a recession is technically defined as two consecutive quarters of negative GDP, everyone can see the party is cashed. Marketwatch wrote, "Economists expect the economy to contract in the final three months of this year and the first three months of 2009, with the nation's unemployment rate pegged to rise near the 8% mark." Housing bust + oil shock + financial crisis + rising unemployment + high levels of personal debt and low saving rates = sad America. This can mean only one thing. Now is the time to enact my plan for WPA-style moon-farming programs. More »
The Case-Shiller home prices index, which tracks US home prices, fell a record-breaking 16.6% from last year in 20 metropolitan areas. [Forbes] More »
—>Governments around the world intervened early this week in their economies to try to hold back the financial slide. Here's the latest of who's doing what: More »
—>Spotted woodendesigner's "My "At Least I Have A Fucking Dollar" Dollar" photo in The Consumerist Flickr pool. Here's the backstory: "I got this dollar as change but did not notice until a few days later. I laughed because it really just sums up everything that has been going on with the stock market and in a way everything that I have been going through lately. I have been very hesitant to spend it and now after shooting it for you people to enjoy I have decided that I am going to save it..... Even though they also dated it on the back ( 9-20-07) so it was actually written a year ago." More »
—>barter for goods and services instead of buying them. Yep, bartering, the age-old method of economic exchange, is making a big comeback — though now it's a high-tech operation that doesn't limit you to your own set of acquaintances. We wrote about this back in July, but an economic practice that has survived from the beginning of our society deserves more than one post. Smart Money has 5 new tips it says will help you save by trading goods and skills you already have: More »
—>McDonald's has had enough of your sauce-hogging ways. You will get a certain number of packets of sauce with your order, and if you want more you're just going to have to pay up, damn it. More »
—>Floyd Norris at the New York Times is live blogging the global financial panic today, and has compiled a list of how the world's markets have performed in October. Compared to some countries, our situation doesn't seem that bad. Which is scary. More »
—>9 of 10 American families shop at Walmart at least once a year, says USAToday, which puts the retailer in an excellent position to tell us something about consumer behavior. So, what has Walmart been observing? "Disturbing behavior." More »
Wachovia announced their $23.7 billion third quarter loss with an all-too-easy-to-mock pre-taped conference call. “Let’s just close our eyes and imagine what the combination of Wells Fargo and Wachovia will create,” said CEO Bob Steel. We suppose that does make it easier not to rudely stare at the number "23,700,000,000." [WSJ Deal Journal] More »
—>Kiplinger's is more optimistic than we are, so they had the cheerful idea to put together a list of 10 things that are going right for consumers — despite the financial apocalypse. Hooray! More »
—>BusinessWeek asks, assuming that we keep sliding down into an official recession, where are the best places to live? They've pulled data from PolicyMap.com and the U.S. Census to make some educated guesses about local economies that will be least damaged by a large-scale downturn. They reason that no matter how the national economy fares, there will always be government jobs and a need for health care; higher education institutes provide a cushion for local economies, too. More »
The Dow fell 500 points after Fed Chairman Ben Bernanke gave a speech about the state of the economy. If you're interested, the text of the speech can be found here. [CNBC] More »
—>The Back-To-School season is usually the best season for retailers aside from the holidays, but not this year. Retail spending was down for the third consecutive month as shoppers stayed away from stores and ignored bargains. More »
—>The debate on the BBC news right now is who is cooler, America or Europe. Europe is getting props for acting speedily and decisively in contrast to Paulson's pace, which is getting characterized as dawdling and indecisive. Some of the very policies Treasury derided, they're now considering since Europe enacted them. The ex-Reagan economic adviser talking head says it's nationalizing risk, a backdoor way of calling them socialists. However, it wasn't until Europe's "socialistic" actions did the markets rebound. Who is right? Only time will tell; we'll see if the rally sustains or is just another fitful shiver in this economic fever dream. The key here is confidence, and it seems to be the most precious and rare commodity on the face of the earth right now. More »
—>If you're a fan of those pink and white frosted Circus Animal cookies from Mother's, either stock up or start priming your nostalgia, because this week the company closed its doors abruptly. They've cited the expected reasons—the rising cost of raw materials, and an inability to borrow in the frozen credit market. More »
—>Let's say that like so many storied former-investment-banking-giants, you, the average consumer, have found yourself over-leveraged (wink, wink) and are looking to clean up your act before the whole thing falls down around you like the house of cards it is. Well, since you can't increase revenue at will, you'll have to decrease your costs. Where should you start? Here are 5 expenses that you can cut right now — so you can take the extra cash and throw it at your debt. More »
—>AIG has decided to cancel a second pricey hotel party for their brokers after receiving another loan from the Federal Reserve for $37.8 billion dollars. AIG defended throwing a $400,000 week long bash for its top independent insurance agents and some AIG employees immediately after the bailout — claiming that these events were "standard industry practice" and that they must continue. They announced that they would go ahead with another event at the Half Moon Bay Ritz-Carlton in northern California. 50 AIG employees were expected to attend. More »
—>Want to know where your fifties go when you fill up your car with gas? GOOD's latest chart breaks down the assorted costs, and compares them with other places around the globe. You can grab a free printed copy at any Starbucks, or go here to check it out in bright RGB goodness. More »
—>The Wall Street Journal says that big discounts and hilarious bailout-themed marketing has failed impress consumers, and retailers are expecting sales to worsen before they get better. Restoration Hardware launched a "bailout" themed promotion offering $100 off purchases of $400 or more at the home furnishings chain, while Steve Madden posted signs depicting "a declining stock chart and implored shoppers to "Sell Stocks, Buy Shoes." More »
—>Jim Cramer, host of CNBC's "Mad Money" and dedicated yelling enthusiast is apparently no longer content to behave strangely on his own television program, so he's taking the crazy to the Today Show. More »
—>Consumer spending, the engine that powers our economy, is probably going to shrink for the first time in nearly two decades, says the NYT — a move that will "all but guarantee" that the current economic crisis will deepen. More »
—>Bloomberg is reporting that Wells Fargo and Citibank may split Wachovia. Neither bank would get assistance from the government and taxpayers under the deal being discussed now. More »
The stock market is not doing well. The Dow Jones industrial average fell below 10,000 for the first time since 2004, and is currently down 440 points. [NYT] More »
—>MyPhil from the New York Philharmonic lets anyone 35 or younger build their own concert series for $29 per ticket. Nearly every Philharmonic concert is eligible for purchase, and the cheap tickets don't land you in the cheap seats. More »
—>Marketplace has the answer to one of the most troubling questions of our time. Why did people who are supposed to be smart buy all this stupid toxic risky debt? Apparently, it's because they weren't that smart, and they didn't understand what they were buying or selling. More »
—>A repeal of a tax on wooden arrows is but one of the many pork provisions getting tacked onto the bailout bill in order to win support from recalcitrant Congress Critters. So while the world watches and waits for us to rescue the financial system, our elected representatives are holding things up until they can grab their piece of the action. Awesome. This one is even better than the $0.10 Michigan recycling refund. I've been trying to crunch the numbers on my wooden arrow business for ages. Finally the margins will work. Full text of the passage, inside. What other fun special-interest pork projects can you find tacked onto this bill? Let us know in the comments. More »
—>After the failure of the nation's largest Chevy dealerships brought the plight of the car dealer to everyone's attention, the bleeding hasn't stopped. The California New Car Dealers Association says dozens of dealerships in CA have also closed. More »
—>So you're probably sitting around thinking, "I want to know more about stagflation, but I want to have fun clicking stuff on the internet, too." Right? No? Who cares. We're still going to direct your attention to this neat interactive graph from the Harvard Business Review. More »
—>Gone are the days of pushing "premium" food offerings, says the Wall Street Journal— big food manufacturers like Kraft and Campbell are going to be pushing "cheap" foods like tomato soup and cheese singles — foods which are thought of as "easy on the wallet" but are still hugely profitable for the manufacturers. More »
It's hard to think of an object that isn't made of wood or packaged or encounters wood at some point in its journey through the economy. Any number of household items that you can buy at Walmart, like a toilet seat for instance, may very well be made from Russian wood. More »
—>Lawmakers are hashing out the details of a huge taxpayer-funded bailout of Wall Street in an attempt to keep afloat the system of banks whose willingness to lend drives this economy's growth. Constituents have flooded their representatives phone lines and inboxes with with their heated reactions. What do you think?(Photo: Getty) More »
—>One of the major sticking points of the inevitable Wall Street bailout was executive pay — but the New York Times says that Treasury Secretary and former CEO of Goldman Sachs, Henry M. Paulson Jr., has agreed to compensation caps for the executives of firms that benefit from the bailout. More »
—>A while back the New York Times was concerned about the cost of the Iraq War and published some estimates of what else we could have bought with that money. We didn't find that very interesting at the time, but now, while trying to wrap our minds around just how effing huge the $700 billion proposed bailout of Wall Street really is, we decided to revisit that article. Here's what you can buy for less than $700 billion, according to the New York Times. More »
—>Forbes says that Wall Street is starting to be concerned about Target because of an increase in the amount of delinquencies in its credit card operation. Uh oh... More »
—>It's the end of the world as we know it, but that doesn't mean you should give up on yourself. Here are 10 skills to have in our brave new world... More »
—>United Airlines is just super crappy at fuel hedging, says Wired. Now that oil is trading at less then $100 a barrel, it turns out that United is paying more than that — and more than other airlines: More »
—>The SEC has temporarily banned short selling of 799 financial stocks, and the Treasury Department has said that it would guarantee (temporarily?) money market funds up to the amount of $50 billion. The New York Times called this move "startling" because money market funds have long been considered one of the safest investments — about as safe as a savings account. More »
—>Jon from NJ says describes his local Subway's new 75 cent refill policy as "silly." Hmmm. More »
Throughout 2009, if you show up on your birthday to any Disney theme park in the U.S., you'll get in free. Imagine how much money you can save on an awesome birthday, provided you go alone! [Orlando Sentinel] (Thanks to RL!)More »
—>Markets rallied in late trading in the biggest gain in six years, emboldened by news that Washington wants to create a new agency that will buy up ALL the bad loans on these financial companies' books. The initiative would be an attempt to fashion a holistic solution instead of bailing out each individual bank as it fails. This would cost many more billions of dollars and require Congressional approval. In order for all those CongressCritters to keep their jobs, there is talk that the deal would be packaged with another stimulus package perhaps including more rebates, along with food stamps and unemployment benefits. More »
—>Forbes magazine has put together a list of America's most stressful cities and as a product of Chicago, the winner of the dubious distinction of being America's most stressful city, I have this to say: "Yeah, so? Shut up and let me eat my hot dog in peace for once, goddamn it. No, I'm not yelling. Why are you always saying that I'm yelling? It's not like you never yell! Pass the sport peppers before this gets ugly." More »
—>What accounts are FDIC-insured? Which aren't? Now that a fund that markets itself as the world's "first and longest running money fund," suddenly found itself in the nearly unprecedented position of having to "break the buck," we thought we'd help clarify. Here we go: More »
—>A new Reuters polls says that shoppers will be cutting back on gift-buying this holiday season due to, you know, being broke. The poll found that there are six times as many shoppers planning to cut back than there are consumers who are planning to spend more than last year. The pollster in charge called these results "staggeringly bad." More »
—>CNBC has put together a quick slideshow list of the top 10 largest Chapter 11 bankruptcy filings in US history based on the pre-bankruptcy assets of the companies in question. It really gives you a sense of the incredible scale of the Lehman Brothers filing — the next closest bankruptcy was Worldcom, which had $103.9 billion in assets before the filing — 535.1 BILLION DOLLARS less than Lehman Brothers. Damn. More »
—>In the history of money market funds, says the NYT, only one had ever "broken the buck" or actually lost money... before yesterday. On Tuesday, the managers of a multi-billion dollar money market fund announced that their customers might lose money in the fund— a type of investment that is considered as safe as a savings account. More »
—>When Treasure Secretary Henry M. Paulson Jr. and the Fed chairman, Ben S. Bernanke, convened a meeting with House and Senate leaders on Capitol Hill last night to discuss giving AIG an unprecedented $85 billion loan, do you think they had a laugh about AIG's commercials? We picture Paulson saying something like, "Ha, ha, ha... 'strength to be there.' That's rich! Rich! Ha! I'm on a roll!" More »
—>The Federal Reserve Bank of New York will lend AIG $85 billion. Explaining the breathtaking move the Fed said, “a disorderly failure of A.I.G. could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance.” They're not just dumping out the public purse on the counter, though. FBNY will take a 79.9% stake in the company, the collateralized loan is for two years, and is expected to be paid off by selling off assets. NYT writes, "the bailout is likely to prove controversial, because it effectively puts taxpayer money at risk while protecting bad investments made by A.I.G. and other institutions does business with." You can say that again. More »
—>About a year ago, CNBC's Jim Cramer completely lost his sh*t on CNBC, screaming at Bernanke to lower interest rates before millions of borrowers went into foreclosure. Now, as the "Armageddon" that he was carrying on about is in full swing, Cramer is taking this opportunity to gloat. More »
—>United Airlines has decided that $25 was too generous a price to check your second bag with their airline, and have announced that they'll be bumping the fee up to $50. More »
Gas prices spiked in Ike's wake this weekend, in some places to over $5. [AP] More »
—>It's not just supermarkets that are shrinking—you can also build yourself a 90-square-foot house to shack up in with your hunched-over spouse and children. You'll save money! You'll save the environment! Relatives will never expect to be given free room and board when they come to visit! More »
—>My friend and I used to pretend to be crafters, and we would email elaborately ridiculous project descriptions back and forth to each other as examples of that past time gone wild. Now we must put down our imaginary glue guns and denim swatches to pay homage to Pamela Cole Harris, who does this stuff for real. Below, see what happens when a kindly scrapbooker goes insane. More »
—>What do you do when your industry starts to go belly up and you can't make enough revenue to stay afloat? If you're a short-sighted U.S. auto maker, you beg the government for $25-50 billion in immediate, low-interest loans in order to retool your plants, so you can start producing the hybrid cars you should have been planning years ago. More »
—>Reader Daniel says that this "dollar store" where everything is a dollar or more seems to be doing better than the 99 cents or less store on the same street. It's having a store-wide 50% off sale. More »
A healthy economy "must be able to allow individual institutions to fail,” said Thomas Hoenig, Federal Reserve Bank of Kansas City president. He's absolutely right. [NYT] More »
—>United Airlines said it would listen to feedback from customers about its proposed plan to ax hot meals for coach passengers on international flights... and it did. The company has decided not to go ahead with the plan. Reader Jason forwarded us the following email from Graham Atkinson, United's Chief Customer Officer. More »
From November to June, American driving dropped by 53.2 billion miles, according to the Department of Transportation. Billion. 53.2 billion fewer miles. That's insane, and kind of beautiful. [NYT] More »
—>Midwest Airlines loyalists, prepare to be upset, the airline is adding 11 seats to its formerly roomy coach section. In addition to converting good seats to less good ones, they're adding a charge for the remaining quality seats. More »
—>Hybrids are all the rage right now but fuel costs aren't the only thing you should be thinking about. After taking into account repairs, maintenance, and financing, these 10 cars offer great deals. More »
—>What should you do when your airline calls to let you know that they've decided to randomly cancel your flight? Travel guru Christopher Elliott gives us the following nightmare scenario: More »
—>Home Depot and Lowe's are starting to realize that the surging housing market — which had fueled their own sales for the last few years — is really and truly over and it may not be coming back for a good long while. What does this mean for their customers? An emphasis on lower prices every day — and fewer promotions. More »
—>An alleged insider for AT&T sent us the following tip on how to avoid a connection fee if you plan on getting both a regular phone line and DSL through AT&T. We don't know if it works, but you may be able to avoid a $40 charge for what amounts to "flipping a switch" at AT&T HQ. More »
—>United Airlines' pilots have had enough of Glenn Tilton, the CEO of United, and have started a website that calls for his resignation. In addition to listing Mr. Tilton's various faults, the website asks you, the consumer, to help them by submitting your United Airlines horror stories. (CC: The Consumerist, naturally...) More »
[It is] definitely on the table. That is something we’re looking at . . . in the future for us. We’re looking at doing some experiments. Obviously one way [is that] you can start selling things for $1.05, $1.09, $1.15 and other ways. You could have more of a break between your 99 cents price point and the next price point." More »
—>Fannie Mae is the nation's largest mortgage finance company and it's just not doing too well, says the AP. Increasing losses from foreclosures are wiping out Fannie's revenue. More »
—>According to a new survey from Zillow.com, Americans are totally out of touch with reality when it comes to their homes. 62% of homeowners surveyed said they thought their homes had appreciated in value over the past year. In fact, only 19% of homes in the US increased in value, and 77% actually decreased in value. (5% stayed the same.) More »
—>It's no secret that prescription drugs are expensive, but it is a bit of one that they don't have to be. Dr. Edward Jardini's book, How To Save On Prescription Drugs, has 20 methods that anyone can use to drastically cut the costs of long-term medications, without sacrificing quality. Here's 14 of them: More »
—>James Dimon, the chairman and chief executive of JPMorgan Chase, is not optimistic about the mortgage market. He told investors that he expects the losses mortgages given to people with good or excellent credit to be “terrible.” According to the New York Times, "The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building." How can this be? More »
—> Here's a graph from the Federal Reserve Bank of St. Louis that shows, historically, how much money banks have borrowed from the Federal Reserve. More »
—>The light in the American economy grew murkier in July. Real wages remain stuck in a fetid mire, up only 2.8% from a year ago, while methanous pockets of inflation bubble floated above to 5%. Rubbing up against declining consumer spending, the economy shed 51,000 jobs in July. The unemployment rate slinked up to 5.7%, a four-year high. However, that was 24,000 fewer jobs slithering away than economists, licking their lips and blinking their eyes, expected. More »
—>Hey lazy! Are you still looking for a job? Maybe you're thinking about "embellishing" your work history a little more, then. However, according to CareerBuilder you should be careful, because "49 percent of hiring managers reported they caught a candidate lying on their resume," usually about things like responsibilities and skills. If you feel lucky, go for it, but there are certain Really Big Lies you probably shouldn't try. More »
—>President Bush signed a massive mortgage relief bill that will help hundreds of thousands of homeowners refinance their unaffordable mortgages into fixed rate government backed loans rather than lose their homes to foreclosure. The bill also put tighter reigns on Freddie and Fannie, says the Associated Press.More »
Finishing second in the Worst Company In America contest hasn't slowed down Comcast's money making machine. Their profits rose 7% thanks to telephone and high-speed Internet services. They're adding customers and making more money per customer, thanks to bundling, says Bloomberg. "...Average revenue per customer rose 8.6 percent to $109.66 as it sold packages combining its services." [Bloomburg] More »
But in this first real slowdown of the wireless age, consumers seem to be saying that home-based telephones are expendable luxuries, like Starbucks lattes or Coach handbags. And it makes sense. Confronted with high inflation, soaring energy costs, and stagnant wages, millions of households are facing choices about which monthly bills to pay and which commitments to maintain. And if it comes down to one or the other, the mobile or the home-based land line, it's clear which is a necessity and which is an option. More »
—>Hmm, wasn't this housing bubble crap supposed to be slowing down? Guess not. The foreclosure numbers for last quarter are twice as bad as last year according to the new numbers from RealtyTrac (a firm that tracks foreclosure filings.) 1 in every 171 households nationwide was foreclosed on, received a default notice or was warned of a pending auction in the second quarter of 2008. Bloomberg says this is an increase of 14% from last quarter and an increase of 121% from this time last year. More »
Bad News: Sales of existing homes slide to a 10-year low, despite a drop in prices and a glut of available homes. [Reuters] More »
Tragic: A woman facing foreclosure commits suicide, faxes note to her mortgage company that said "by the time they foreclosed on the house today she'd be dead." [Boston] More »
100 billion dollar bills from Zimbabwe will get you a loaf of bread in that country, or $80 from a collector on eBay. "Official inflation is quoted at 2.2 million percent but independent finance houses say it's closer to 12.5 million percent."[AOL] More »
—>The New York Times has an article that tells the unfortunate tale of Diane McLeod and her love affair with debt. She started out "debt free" when she got married, but after a divorce she'd managed to accrue $25,000 in credit card debt. Despite not having a down payment or any assets, Diane was given a $135,000 mortgage. Over the next few years, illness, underemployment, and shockingly irresponsible spending combined disastrously with the bank's willingness to refinance her loan as her home appreciated (for a fee, of course). 5 years later, Diane owes $237,000 on her mortgage. She's in foreclosure now, and a recent sheriff's auction of the home did not draw a single bidder. A similar house down the street recently sold for $84,000 less than she owes on her home. More »
—>The Wall Street Journal would have you believe that devastated Starbucks-lovers all over this nation are launching campaigns to try to save their "beloved" Starbucks. We're not entirely sure that we believe this based on the single example given in the article, but we'll play along... More »
—>According to legends we've heard, it's possible to find a job by searching online. Flimflammers are also looking for you, looking to defraud job seekers. The BBB has 7 red flags to should watch out for that could indicate that job opportunity is just a scam. More »
—>Starbucks has released the complete list of stores that will be closing. You can browse the full list, organized alphabetically by state, inside. More »
—>The U.S. Coca-Cola market just isn't what it used to be — bottler Coca-Cola Enterprises' profit fell 23% due to commodity costs and sluggish U.S. sales. The solution? Raise prices. You can expect battled Coke to cost a little more after labor day. More »
Financial blogger Brandt Smith at Get Rich Slowly suggests that your first step should be to contact your network, and he backs up his assertion with a real-life success story. He also shares seven keys to developing a strong network: More »
—>We're always told not to worry about our bank failing because our deposits are insured up to $100,000 by the FDIC. Well, in case you were wondering what happens when a bank actually does fail, look no further than the great state of California, where IndyMac has been taken over by federal regulators and its customers are getting a taste of all the FDIC has to offer. More »
Getting your basic health care from a charity organization isn't just for people in remote areas anymore, according to 60 Minutes. Meet RAM — Remote Area Medical — a charity founded to bring basic health care: vision, dental, and mammograms, for example, to remote parts of the world. What remote areas are they working in now? Try Knoxville, Tenn. More »
—>This Sunday the Bush administration asked Congress to approve a "rescue package" that would give officials the ability to inject "billions of federal dollars" into Freddie Mac and Fannie Mae. The Federal Reserve also announced that it would make its short-term lending programs available to Freddie and Fannie, said the NYT. More »
—>Freddie and Fanny lost about half of their value overnight as investors became more certain that the government was going to have to bail out the two GSEs (Government Sponsored Enterprises.) The New York Times says that senior members of the Bush administration are considering a takeover of Freddie and Fannie that would leave their shares "worth little or nothing," and where taxpayers would pay "any losses on mortgages they own or guarantee." More »
—>In a letter signed by 12 CEOs, the US air travel industry has called upon you, their customers, to help them lobby congress. What's the problem that they need help solving? Oil speculation. Read the letter inside. More »
—>Freddie Mac and Fannie Mae, the "government sponsored" enterprises that are supposed to bail us out of the current mortgage crisis, may be in danger of collapsing, according to William Poole, the former president of the St. Louis Federal Reserve, who told Bloomberg the companies are already "insolvent." More »
—>The Center for Neighborhood Technology has an fun (but painfully slow) interactive map that will allow you to see how soaring transportation costs are impacting different metro areas across the US. More »
—>You may be broke, but Aldi isn't! As consumers cut back, more of them are shopping at deep discount stores like Aldi. The German-owned grocer usually doesn't advertise, but the economic slowdown is helping business, and Aldi is investing in a few commercials. More »
If you're wondering which 600 Starbucks locations are going to be closed, well, you can just keep on wondering. [Bizjournals via Starbucks Gossip] More »
—>Losing a job is bad enough, but your unemployment benefits can vary wildly depending on where you live. The L.A. Times compared unemployment benefits to the cost of living and picked the twenty best and worst cities to be unemployed. More »
The current standby policies of 12 airlines. Free standby is going... going... [Dan's Deals] More »
—>MSNBC says that Starbucks has announced that it will be closing 600 locations in the US and could eliminate up to 12,000 full and part-time jobs. Previously, the company had announced that it would close only 100 stores. More »
A Consumer Reports study finds that 79% of consumers surveyed say they plan on buying a car with better fuel economy. [Consumer Reports] More »
—>Personal finance blog Free Money Finance suggests that employees can improve their incomes by asking for a raise, but you have to make sure to time it right. More »
—>With the tightening economy, airfare feels more painful than ever,you can avoid paying more than absolutely necessary with these seven tips... More »
—>As the foreclosure crisis continues, pets are losing their homes and their families as cash-strapped humans can no longer afford to care for their dogs and cats. More »
—>Countywide CEO Angelo Mozilo thinks his company being treated unfairly by the media according to a article in BusinessWeek. At the Countrywide annual shareholders meeting, Mr. Mozilo said: More »
—>Most of us know that looking for a job can be a job in itself, but there are few things in life more dreaded than the job interview. Even if you remember to spit out your gum and offer a firm and confident handshake, there is a myriad of conversational land-mines which must be avoided. CNN in partnership with CareerBuilder has assembled 8 things that you shouldn't say during a job interview. The list, inside... More »
—>Travel expert Christopher Elliott says US Airways refunded a couple $2200 on a pair of nonrefundable tickets to Ireland after the wife wrote to the COO and explained their situation. They tried Expedia first and were refused, and although they had travel insurance it wouldn't cover unemployment. The wife, Jennifer Bush, says the US Airways rep who responded to their plea "told me that they all felt for my situation and decided to refund the amount of the airfare." More »
—>Sure, switching from a gas guzzler to a highly efficient (and probably much smaller) car is best for the environment, but it's not a realistic solution for large families or people who can't afford it. But don't let the fact that you can't buy a 40 mpg car turn you off of a trade up in efficiency anyway. A couple of economists have pointed out that "using 'miles per gallon' as a measure of fuel efficiency leads people to undervalue the benefits of replacing the most inefficient automobiles." Their point: if you're driving a gas guzzler, even a small improvement in fuel efficiency can generate significant savings. More »
—>Almost everyone is looking for ways to save money but they often overlook making cutbacks in areas they consider necessities. It may seem reasonable to do so until you consider that some of these necessities may not be necessary at all. An article by Bankrate.com suggests that if you take a serious look at some of these so-called necessities you may find more savings than you thought possible, therefore, they have put together a list of 12 common "necessities" which could be draining your cash. The list, inside... More »
—>A survey by Kelley Blue Book says that new car shoppers are giving up Starbucks to help offset the cost of $4 gas. Sorry, big green mermaid lady! The KBB study results reveal that 28 percent of new-car shoppers have stopped going to Starbucks or other coffee houses entirely, and 21 percent indicate they are going less often due to skyrocketing gas prices. More »
Sign of economic desperation: man robs kids' lemonade stand, but the kids chase him into nearby house and call the cops, who arrest him and charge him with felony robbery. [AP] More »
—>These Sun Chips have shrunk from 11.5 oz to 10.5 oz and are still being sold at the same price. "Not even healthy foods that normally are already sold in smaller portions are safe," says tipster MasonTwo who spotted these on the shelves at Walmart. CNN says the products most vulnerable to the Grocery Shrink Ray are paper towels, potato chips, sticks of gum, toilet paper, detergent and candy bars. Hey, look at the bright side, maybe the Grocery Shrink Ray is just what we need to fight the obesity crisis. More »
—>Although we are not technically in a recession, it's starting to feel like one. As gas prices and unemployment continue to rise, we've rounded up a collection of useful advice for the current period of economic austerity. More »
—>If you're thinking about getting that new 3G iPhone, you might want to hold off a few more months and see what happens with the other carriers. BusinessWeek has an article about how AT&T's aggressive subsidizing of the iPhone will have a negative impact on handset makers and carriers, because it's going to force them to increase subsidies and reduce service fees. Translation: good times for the consumer bold enough to stay off the iPhone train. More »
—>With unemployment rising to 5.5%, more Americans are finding themselves with more time to catch up on their daytime TV or put in some serious time on World of Warcraft. Others see unemployment as an opportunity to begin a new career, take a mini retirement, invest in yourself, or find other sources of income. Their perspectives, inside. More »
—>The nation's unemployment rate has reached 5.5%, a half-percent increase from last month, which is the largest increase in 2 decades. If you are "between gigs" or simply looking to upgrade, CNN Money in partnership with Careerbuilder, has put together a list of 10 jobs that pay $20 an hour or more. Check out the list, inside... More »
—>While some people conflate "recession" with "depression," the enterprising gents at Lumber Liquidators are using it as a cheery marketing hook. An ad on their website shouts, "Take advantage of the weak dollar! We ship anywhere in the world." I guess when your brand is all about the color yellow, it's hard to be a mopeypants. More »
—>These graphs by GOOD magazine show how much the dollar has sunk against various currencies from May 07-April 08. But don't feel too bad, folks, at least we're giving the South African Rand a thorough drubbing. More »
Analysts are predicting that oil could hit $150 a barrel this summer. Won't that be fun? [Reuters] More »
—>Suburban commuters may not enjoy paying an average of $4 a gallon for gas, but the rural US, where income levels are low and dependence on large vehicles is high, is getting hit the hardest says the New York Times. More »
—>Here's a bad idea. Please don't protest high gas prices by setting fire to a Chevron station, an Arco station, and a Starbucks. Meet Diane Craig, 64, of Danville, California. She's accused of using "fireplace logs" to try to start fires inside the restrooms of the two gas stations and a Starbucks. More »
—>Grim numbers today from the Mortgage Bankers Association. 2.5% of all mortgages serviced by the association's members are now in foreclosure — 1.1 million homes. The rest of the numbers aren't any more cheerful. Both the rate of new foreclosures and late payments were the highest on record going back to 1979, says the AP. More »
"Maybe a whole generation will wake up and realize that collecting points on your Discover card doesn't make you rich." - Dave Ramsey. [TIME] More »
Gas prices are changing consumer behavior says G.M., forcing the manufacturer to slash production and close 4 plants as they make the shift toward more fuel efficient vehicles. They also announced that they may sell the "Hummer" brand. More »
Michael Crews Development has a proposition for you. If you buy one of his $1.6 million-and-up, 2-acre estate homes in the San Pasqual Valley, he'll toss in a four-bedroom row home for free! More »
—>Bad news for Sears Holdings — the parent company of Sears and Kmart lost $56 million in the first quarter, and some experts are saying that boss Eddie Lampert may have to face up to the fact that Kmart needs to close. More »
To deal with pumps that don't have enough numbers on them to go above $3.99 per gallon, some gas station owners are selling gas by the half-gallon. Another problem is that pumps with dials on them are wearing out faster as the dials have to spin faster to keep up as the dollars per second coming out of the pump is greater. There is a seventeen-week backlog for replacement pumps that let the price show above $3.99. More »
Consumer confidence hit 57.2 Tuesday, a 16-year low. Sad, sad, sad economy. [NYT] More »
—>Oh no! You know there's something wrong with the economy when people stop buying (comparatively) expensive 20 oz bottles of Coke. The Wall Street Journal says that sales of Coke's biggest profit-maker are down and its affecting the company's bottom line. More »
Sales of newly constructed single family homes are down 42% from last year, the largest single year-to-year drop in nearly 27 years. [Reuters] More »
—>AAA is claiming that Americans drove 4.3% fewer miles on public roads in March — the first year-over-year decline since 1979, and that for the first time since 2002, Americans said they planned to drive less this Memorial Day weekend. So, with the national average at $3.936 per gallon, did you actually drive less? More »
—>With gas prices topping $4.00 a gallon in Chicago, Chicagoist started wondering how much gallons of other liquids cost. Turns out gas is still cheaper than the Champagne of Beers... More »
—>Scott McCartney, who writes the Wall Street Journal's "Middle Seat" column, has some thoughts about what consumers can expect from airlines, now that oil has hit $130 a barrel. He says that "he change in oil prices from a year ago to today translates into $24.6 billion in added fuel costs for passengers and cargo airlines on an annualized basis," which is more than the airline industry has ever earned— its best year saw $5.3 billion in earnings. More »
—>American Airlines has just announced that it will begin charging a $15 fee for the first checked bag starting June 15. The airline also said that it would raise fees for things like "reservation help" and "oversized bags." More »
More and more "regular-Joe working Americans" are on food stamps. [USAToday] More »
—>Marketplace Money took a look at some folks who are selling their possessions on eBay and Craigslist in order to pay their bills. The main interviewee was a former mortgage broker who used to make six figures but was now selling his collection of cool amps to pay off his $5,000 a month mortgage and $50,000 in credit card debt. More »
—>As those delicious morsels behind grocery store windows grow increasingly unaffordable, citizens become more willing to report their law-breaking neighbors to Crime Stoppers in exchange for rewards ranging from $50-$1,000. “Two or three arrests per week, you could make $700, $750 per week,” Sergeant Selfsaid. “You could make better than a minimum-wage job.” More »
—>Macy's has managed to lose $59 million in the first quarter. CEO Terry J. Lundgren says that considering the crappy economy, losing $59 mil isn't all that bad: More »
Inflation rose far less than expected in April, mitigating fears that the Feds would have to grapple with both trying to loosen credit and fight off rising prices. [AP] More »
—>It sucks to be a "Mom & Pop" gas station owner these days. Gas station owning isn't as profitable as you might think (the oil company gets most of the money) and now it seems that thousands of older pumps just don't have the ability to charge more than $3.99 per gallon — and also can't charge more than $99 for the total sale, preventing truck and SUV owners from filling their tanks up all the way. More »
Oil has hit a new high of $126 a barrel. If you listen quietly you can hear the sound of Delta and United softly weeping. [AP] More »
—>The New York Times made a pretty cool graph out of the Consumer Price Index, which tracks changes in prices for many consumer goods over the past year. Turns out, gas prices went up. More »
Craiglist's for-sale listings hit 15 million in March, almost double a year ago, as people sell off stuff in an effort to make ends meet. [AP] More »
—>The number of people filing for bankruptcy continues to increase, as bad mortgages and the rising price of [insert noun here] squeezes every last penny out of debt-laden consumers. The American Bankruptcy Institute says the number of filings was up 47.7% in April from a year ago, and up 7.1% from March '08. More »
Quick, spend all those 20% off coupons you've been hoarding: Linen's N Things filed for Chapter 11 bankruptcy protection. [NYT] More »
"People are not willing to modify their lifestyle in order to live on what they earn - that is the real problem." Larry Winget, author of "You're Broke Because You Want To Be" on the root cause of the current economic crisis. [AllFinancialMatters] More »
—>Every day, American Airlines gets up in the morning, looks in the mirror, thinks about the $3.3 million dollars it lost yesterday, brushes its teeth and gets ready to lose another $3.3 million. Fortune says the hemorrhaging began in January, and while red ink is no stranger to the airline industry, they're running out of things to cut. More »
As predicted, the Feds cut interest rates a quarter of a point to 2%. [NYT] More »
—>If you're still on the fence about whether to spend your stimulus check, pay off debt with it, or stock up on ramen noodles, this checklist may help you decide. Some of the tips are pretty unnecessary—"your job duties are marginalized" and "your company plans to move to a smaller building" shouldn't be hard to decipher. It never hurts to remind yourself about some of the signs of an impending downsize, however. More »
—>JetBlue announced its first quarter results today and while things aren't as bleak as they are over at United Airlines, the discount carrier said that it was struggling under the weight of its fuel bill and was going to modify its baggage check policy in order to remain competitive with other airlines. More »
Sales of Barbie fell 12 percent in the U.S. as the 49-year- old doll faced competition from Hannah Montana and Ganz's Webkinz. Mattel, which recalled more than 21 million Chinese-made products in 2007, expects Chinese manufacturing costs to rise further. The yuan has climbed 10 percent against the dollar over the past 12 months, and inflation in China is near an 11-year high.
—>For those of you hoping that foreclosure crises has hit bottom, we've got some bad news. A new report released by the The Pew Charitable Trusts says that 1 in 33 homeowners is expected to be in foreclosure over the next two years, due primarily to subprime mortgages made in 2005 and 2006. More »
American Airlines lost a bunch of money this quarter. Ruh-roh. [NYT] More »
What recession? Hedge fund managers are still making billions a year. [Reuters] More »
—>WaMu announced today that they lost $1.14 billion in the first-quarter and CEO Kerry Killinger said that nothing of this scale had happened "since the Great Depression." Comforting!
"Nothing of this scale has happened since the Great Depression," Chief Executive Kerry Killinger said at WaMu's annual meeting. "This is the toughest credit cycle I have seen in my years in the industry."
WaMu says it will cut 3,000 more jobs, including that of Mary Pugh, chair of their finance committee who "had been fiercely criticized for failing to protect Washington Mutual from overexposure to subprime and other risky mortgages," according to Reuters. More »
—>As the cost of food and gas begin to crowd out other expenses, and access to credit is limited by the mortgage meltdown, a "widening wave of bankruptcies in American retailing" is threatening the economy, says the NYT. More »
Consumer Confidence is now at a 26-year low. Do you need a hug? [Marketwatch] More »
—>Kiplinger tries to help you save money on your next airline "flight"—we have to put quotation marks around that word now, since the prospect of actually getting up in the air seems purely hypothetical at this point—with their latest travel article. A lot of the advice boils down to, "Find out what each airline charges extra for, then choose a different airline," but it's helpful to have everything in one article for a quick reference. More »
Snapshot of the economy: Small car sales up in March, SUV sales down. Those experiencing the biggest deltas? Toyota Yaris:up 83.2%, Nissan Titan: down 44.9% [Kicking Tires] More »
—>CNNMoney has an interesting interview with behavioral economist, Dan Ariely. In the interview, Dan talks about how price comparison (which we take for granted as a "good" habit for consumers to engaging in) may not be very helpful after all. Ha! More »
—>Treasury Secretary Henry Paulson wants to consolidate the nation's financial regulators into a tripartite gang that can save the economy from distress and doom. The plan to give the Federal Reserve broad new regulatory powers and streamline the regulatory community has been in the works since last March, before the start of the subprime meltdown. Paulson is worried that the U.S. markets are no longer competitive with maturing world markets, some of which aren't hampered by nuisances like regulation. After the jump we'll explain the consumer impact of the plan and introduce you to your three new regulators. More »
JC Penney slashed its forecast today. The retailer blamed the economic slowdown for its poor sales performance.
"J.C. Penney counts half of American families as its customers, and they are feeling macroeconomic pressures from many areas ... [and] the sharp decline in sales is reflective of these trends. While the economic stimulus package may provide some temporary benefit, we expect the continuation of a difficult environment over the course of 2008."
—>Today CNNMoney profiles an out of work mortgage banker who has been sending out 10 resumes a day since he was laid off in Feburary. He just got his first interview. More »
—>Here's some depressing news. AT&T's CEO says his company is having trouble finding enough skilled workers in the United States to fill the 5,000 jobs he promised to bring back to this country. More »
—>The American Customer Satisfaction Index (ACSI) dropped again for the second consecutive quarter to 74.9. Why does this matter? "When customer satisfaction declines, consumers have less enthusiasm for repeating experiences that no longer provide the same gratification," says Professor Claes Fornell. AKA, they'll be spending less money. More »
—>Marketplace had a telling interview with Susan Smith of PricewaterhouseCoopers, the editor-in-chief of a new report about the commercial real estate market titled "Rough Road Ahead for Investors." More »
Consumer confidence dropped to 64.5 in March, down from 76.4 in February, the lowest level in 5 years. [AP] More »
—>You know times are tough when the Dollar Store needs to hold a 70% off sale. That should be a line in a blues song. Maybe it's an art installation making commentary on the current strength of the dollar. More »
Maybe I'm skimming the wrong articles and half-listening to the wrong news reports, but in all this belly-aching about declining consumer spending one thing seems to be missing. Now, correct me if I'm wrong, I don't seem to see any mention of the fact that consumers have been overspending for so long and it might actually be economically healthier in the long-run for there to be a cutback. IANAE (I Am Not An Economist) but it seems to me that if you just keep building magic castles on magic castles, eventually there will have to be an implosion. The earlier it happens, the less catastrophic the end result. More »
Jared Bernstein, an Economic Policy Institute senior economist, notes that taxpayers have in the past spent half to two-thirds of their rebate checks. However, he points out that the current economic conditions are unique. More »
JP Morgan has raised its Bear Stearns offer from $2 to $10. [NYT] More »
Laundry detergent is expensive. One "debt free" blogger has taken the time to mark up a detergent cap to show you how much product you're probably wasting with every load. [No Credit Needed] (Thanks to J.C.!) More »
The New York Times ponders: How could irresponsible mortgage lending "take out take out the whole global financial system?" [NYT] More »
Oil prices fall as demand for gasoline lessens. Been staying home? [CNNMoney] More »
Amsterdam doesn't want your stinking worthless U.S. currency. [Reuters] More »
Glenn's family went to Applebee's last night and discovered that the restaurant is cutting back. Really cutting back. You have to bring your own candles now for their birthday cakes, because "Applebee's doesn't supply birthday candles anymore." More »
Adjust your metaphors. Chicken feed is now expensive. Pilgrim's Pride, the world's largest chicken processor is laying off 1,100 people due to the rising cost of corn. [CNNMoney] More »
—> RacerX at "Life, Liberty and the Pursuit of Money" has posted the 6 ways he and his wife save money when they go out to eat. Following all of them would make for a noticeably different experience at your favorite restaurant—perhaps more than you'd like. But even adopting a couple of these tips could knock 10% or more off your next fancy meal with the significant other. More »
The Freakonomics blog says we're in a recession. Who the hell are we to argue? [Freakonomics] More »
—>The Mortgage Bankers Association says that foreclosures have hit an all-time high as more and more borrowers with adjustable rate mortgages walk away from their homes before their payments increase. More »
—>Costco has announced that their 2nd quarter profits are up 31%! That's a lot! More »
Initially, the lenders gave the impression that the majority of these loans were being given out to sophisticated investors who couldn't document their $500,000 income and had better places to put their money to work. Clearly this wasn't the case as we are seeing that 71% of the people are electing for the lowest of the low payments. Of course when the market in California was ripping it up by seeing 20%+ appreciation each year, making the minimum payment made sense because you were going to sell in 1 to 2 years and pocket the change. Heck, it was cheaper than renting!
Gasoline prices, which for months lagged the big run-up in the price of oil, are suddenly rising quickly, with some experts fearing they could hit $4 a gallon by spring. Diesel is hitting new records daily and oil closed at an all-time high on Tuesday of $100.88 a barrel. More »
A new survey from Reuters and the University of Michigan found that a third of homeowners felt their homes lost value in February, compared to 16% a year ago. More »
"I feel we are well positioned for an economic downturn," Scott said. "Our low prices and low-cost business model should give us an advantage over other retailers if things get more difficult for consumers."
Credit default swaps form a large but obscure market that will be put to its first big test as a looming economic downturn strains companies' finances. Like a homeowner's policy that insures against a flood or fire, these instruments are intended to cover losses to banks and bondholders when companies fail to pay their debts. More »
—>Reuters says that consumer confidence has plunged to levels associated with the recessions of the '70s, '80s, and '90s.
The Reuters/University of Michigan Surveys of Consumers index of consumer sentiment dropped to 69.6, the lowest reading since February 1992, and below analysts' median forecast for a preliminary reading of 76.3. More »
Fed Chairman Ben Bernanke on the state of that not-a-recession that we may or may not be in. [FED] More »
—>False reports have circulated that the stimulus checks are an advance on your tax rebate and were going to cut into your tax rebate. That's not the whole story. Yes, it's an advance, but it's an advance on an additional credit Congress passed for your 2008 earned income. It's too late to do that for 2007, seeing as it's already over. "So the government is making me borrow from myself?!?!?" No. Congress is giving your 2009 self a $600 credit, and is sending that $600 back in time by one year. More »
Jeff sent us the following story of how Allen & Associates, a subsidiary of Workstream, Inc., sold him a comprehensive job-placement service package last fall, then short-changed him on the actual services. More »
—>Did you know there was an index to measure misery?
Misery is defined as a state of great unhappiness and emotional distress. The economic indicator most often used to measure misery is the Misery Index. The index, created by economist Arthur Okun, adds the unemployment rate to the inflation rate. It has been in the narrow 7-to-9 range for most of the past decade, but was over 20 during the late 1970s.
"We didn't realize we would take so much in and there were that many people traveling or having euros to bring in. But some days, you'd be surprised at how many euros you get," Chu said. More »
"We live in a small town, and everybody looks at your clothes and what you drive and where you have your hair done," said Ms. Gamble, who earns about $2,600 a month as a grievance counselor at a local prison. More »
Macy's Inc. plans to eliminate the former Marshall Field's headquarters in Minneapolis and cut more than 2,000 jobs as part of a move to consolidate regional offices and boost sales and cut costs. More »
—>Well, here's some bad news. Reuters says that the ABC News/Washington Post Consumer Comfort Index dropped to -33 in the week ended Feb. 3, which is its lowest reading since November 1993.
In a separate ABC News/Washington Post poll released earlier this week, 59 percent of Americans said they think the economy is already in a recession. More »
"Whatever the senate does they should not delay this package. They should not keep money out of your pocket, the sooner you get a check, the more likely it is that the stimulus package will kick in and make a difference. So my attitude is if that if you're truly interested in dealing with the slowdown in the economy—the Senate ought to accept the House package, pass it, and get it to my desk as soon as possible." More »
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets. More »
—> Citibank and Bank of America both offer special credit card programs based on health and medical expenses. If you're disciplined about not carrying revolving debt, and you have recurring medical expenses, they can help reduce your total cost over a year. Bank of America's cards are point-based programs—if you've got Aetna insurance, you can accumulate points that you can turn into "cash direct deposits to a health savings account, or other standard rewards." Caremark members can redeem points for awards only, although BoA's standard awards catalogue "includes health and wellness products like fitness equipment and blood pressure monitors." More »
—>Despite the fact that the Fed cut the federal funds rate on overnight loans between banks to 3.5 percent from 4.25 percent in an attempt to prevent a sell-off in U.S. markets, the Dow Jones Industrial average opened down by more than 460 points. More »
Now that SallieMae buy-out deal has crumbled and they're facing much higher borrowing costs due to the subprime fiasco, the unpopular student lender will shed 3% of its workforce, or 350 jobs, mostly CSRs at their call centers. More »
—>It looks like Bush's economic stimulus package is going to take the form of instant cash bonuses: $800 for individuals and $1600 for married couples. That's dumb, everyone should get Costco coupons! All kidding aside, the NYT says the ~$500 rebates granted after the 2001 recessions proved "surprisingly effective...people spent most of the money rather than salting it away in savings or using it to pay down credit card debt. A 2004 study by economists at the Department of Labor, Princeton University, and the University of Pennsylvania found that households spent between 20 and 40 percent of the rebate within three months and another third in the following three months." Will this "wealth surge" be just what the countries needs to beat back the forces of recession holed up in our economy, terrorizing our financial well-being? Bring on Operation Cash Dump. More »
The money transfer services provider's stock lost half its value Jan. 15 after the company disclosed a plan to recapitalize its balance sheet that depends on its ability to shed its risky loan portfolio. More »
Bank of America will "scale back its structured products unit, stop offering collateralized debt obligations and sell the prime brokerage that caters to hedge funds, eliminating 650 jobs." More »
There are mounting anecdotal signs that beginning in December Americans cut back significantly on personal consumption, which accounts for 70 percent of the economy. More »
—>American Express stock fell 7% after saying it would have to write off $275 million, thanks to more and more customers not paying their bills. What is probably happening is that people can't tap their home equity so they're going to the next easiest line of credit, credit cards, and failing to pay their bills there as well. In Walden, Thoreau talks about how early New Englanders would make their first homes by digging a cellar in the ground and putting a roof of saplings and bark over the top of it. My, that would make a mighty fine recession shelter. More »
—>In a speech today Feddy Reserve Chairman Ben Bernanke suggested that even steeper interest rates could be in the works. His strong language suggests that they're considering a half-point drop, down from the current rate of 4.25%. If they follow through, the cut would be expected to be announced at the next Reserve Board meeting on January 29th. Last time rates were cut we took a look at how it affects the price of a bushel of corn in Kansas, i.e., you the average consumer, and another rate cut would be more of the same. More »
—>A new study says that 86,000 mortgage related jobs were cut due to the weakening housing market, says CNNMoney. Diabolical mustache-twirling evidence-forging lender Countrywide unburdened itself of the most workers, cutting 11,665. More »
Steve Carrigan is in charge of economic development for Stockton. He says bank loans made it a party every day. More »
Sales of existing homes rose slightly for the first time in 9 months, but prices fell. Analysts do not think the bottom has yet been reached: "Given stress in the mortgage market and depressed buyer sentiment, we judge this to be a brief respite and look for sales to fall further," Lehman Brothers economist Michelle Meyer said. [Wall Street Journal] More »
It was the largest drop in more than 16 years and marked the 10th consecutive month of price depreciation and 23 months of decelerating returns. More »
The International Council of Shopping Centers said same-store sales, or sales at stores open at least a year during the November-December period, appear to be coming in just below meager projections, though it said post-Christmas buying could help restore the shortfall. More »
Consumer spending rose in November by the largest amount in three years. Is "the demise of the US. consumer greatly exaggerated" or are Americans "buying on fumes"? [NYT] More »
—>Foreclosure tracking firm RealtyTrac has announced November's foreclosure numbers and, while foreclosure activity is down 10% from last month's number, the news isn't happy. Foreclosures are up 68% from November 2006, with 201,950 foreclosure filings—up from 120,334 this time last year. Also worth mentioning, last year's numbers weren't exactly low—they were up 68% from 2005. More »
—> Mastercard reported on Sunday that, after a slight bump around Black Friday, sales of women's clothing has dropped again, down 6% even while sales of men's clothing has gone up 4.5%. They think it has to do with an overall weak year for women's fashion, and the fact that mothers tend to cut back on new clothes for themselves first when faced with a tighter budget. The silver lining: there may be considerable discounts at women's clothing retailers in the immediate future as they try to bump up sales at the last minute. More »
—>Canadians are heading to the U.S. to do their shopping—and are leaving their old clothes behind in order to avoid paying a duty when they cross back into Canada. More »
Stagflation is coming, stagflation is coming! [Bloomberg] More »
—> The evolutionary cycle of gadgetry is fast enough now that you can score some great deals on last year's products, which are perfectly fine for all but the most technologically literate (or obsessed) people in your life. A perfect example: the first generation Zune, which can be found for as low as $80, has a bigger screen than a non-Touch iPod, and a 30 gigabyte capacity. Yes, it's also got lots of drawbacks. But that's why it's $80, and for the average consumer who just wants a decent mp3 and movie player, it does the job nicely. More »
—> The next time you go shopping for a camera, cell phone, video recorder, or other gadget, you can save money by deciding what features you really need, and moving down the model line instead of up to the most feature-packed gizmo, writes SmartMoney. For example, "Only 31% of cellphone owners actually use their phone to take pictures, while only 15% browse the Internet, and less than 10% listen to music, download games or watch videos." More »
"If I were you, I would want in this time period someone running one of these companies (Fannie Mae and Freddie Mac) to err on the side of pessimism rather than optimism," he said.
—>The Fed cut interest rates again today as they continue in their attempt to swoop in and save the economy from the credit crunch. Much like Superman, but boring and not as effective. More »
This year's early Thanksgiving weekend is messing with retailers' minds. [New York Times] More »
—>The Wall Street Journal analyzed more than $2.5 trillion in subprime loans made since 2000 and found that as the number of subprime loans grew, the loans were being issued to borrowers with better and better credit scores—borrowers who could have qualified for traditional loans with more reasonable terms. More »
—>An especially gloomy report by the U.S. Conference of Mayors says that property values across the U.S. could decline by $1.2 trillion next year, slashing tax revenue by $6.6 billion. More »
—>Forbes has put together a list of the best and worst housing markets in the U.S. Think every market is dropping? Apparently not. Salt Lake City, you're doing just fine. So far. Overall, the picture isn't as rosy: More »
—>The Organization for Economic Cooperation and Development is predicting that mortgage-related write-offs could reach $300 billion, says the New York Times. Although major U.S. financial institutions have placed their estimates at around $50 billion, the OECD says that "a rougher period may yet await financial markets." More »
—>Government-sponsored mortgage lender Freddie Mac, the second largest U.S. mortgage company, posted a $2 billion loss for the third quarter and warned that it may not have enough cash to cover its mortgage commitments. More »
—> Oil is poised to break the century mark, and SmartMoney has a short article that examines the effects it will have on the average American's budget. A couple of reasons why we haven't felt more of these effects so far is that the rising cost has largely been eaten by oil refining companies and their gas stations, and because consumers have actually begun to reduce their gas consumption. However, if the price-per-barrel continues to rise, the U.S. faces a cold winter, and the dollar continues its anemic performance, you can look forward to the following consequences: More »
—> When your iPod, Zune, CueCat, HP printer, DVD player, or game console goes on the fritz, you no longer have to put it in that closet where you store all the stuff that doesn't work but that you don't think you should throw away. There's now a whole world of self-help forums and repair advice websites online where you can trade tips with other owners of consumer electronics—weird things companies would never tell you, like using a piece of folded paper as a shim to get a failed hard drive working again in your iPod. More »
—>Federal Reserve Chairman Ben Bernanke isn't feeling too optimistic about the economy these days, according to NPR. He warned Congress today of an coming economic slowdown tied to the subprime meltdown, the surge in energy prices, and oh yeah, did we mention the subprime meltdown? More »
—> Why not permanently alter your face? People on TV do it all the time. Besides, you're a grown up, you can do whatever you want! If you're in the market for a chin tuck, an eyebrow scoot, or a face-pulling-back thing—hey, we're not the experts here—but you don't have a lot of disposable vanity cash, then head down to Argentina, which is filled with "reputable doctors who are highly skilled due to a local rage for cosmetic surgery" and where common procedures can cost a third of what they cost in the U.S. Plus, you get airlines miles. More »
—>Today marks the 20th anniversary of the "Black Monday" crash of '87, in which the stock market lost 22.6% in one day, the second largest one day percentage drop in history and one we're not likely to see again any time soon. More »
Are you too broke to go trick-or-treating this year? Good! More candy for the rest of us! But even though Halloween brings out the competitive sweet-tooth in us, we want to share Kiplinger's tips on how to have a cheaper Halloween.Two of them—"get creative on costumes" and "follow a... More »
—> A columnist at Get Rich Slowly describes how her family learned to focus on getting the most use out of the things they purchase, rather than using them once or twice and then moving on to the next new thing. While it sounds like an obvious tip, it can be a little harder to practice in real life—but, she writes, the results can be eye-opening. More »
—> We've written before about the money-saving goodness called your local public library, but a lot of readers may not know about a powerful online search tool, WorldCat, that lets you search the holdings of 57,000 libraries in over 100 countries. Even better: "Tell it what book you're looking for and your zip code or city, and it will pinpoint the nearest library that has the book." More »
—>Citibank is warning investors to expect a 60% drop in earnings due to "dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment." More »
—>Where are the affordable real estate markets in your state? Oh, we don't know. It's a good thing BusinessWeek does. They've made a list of the most and least affordable markets in each of these United States. More »
Here's a potential way to get certain drug prescriptions filled cheaply—as in, a several-month supply for less than $15—from our own Consumerist reader and commenter Hambriq. He posted it last week and we thought it was worth bringing to the foreground for more readers to see. More »
—>Canadian book buyers are mad! After decades of higher book prices being explained away by the weak Canadian dollar, book buyers suddenly find themselves paying "more" money for the same book. More »
—>According to the Associated Press the U.S. Dollar and the Canadian Dollar have reached parity for the first time since 1976, although Google is currently claiming that the ratio is 1 Canadian dollar = 0.987069 U.S. dollars. Fun! More »
—> We're going to say something positive about U-Haul! No, not about the company (it has a rich history of complaints on our blog), but about the community trading service they've enabled on their "U-Haul Box Exchange" forum where people give away or sell their boxes after they've moved—although hopefully you won't find an unpacked baby in any used boxes you get your hands on. More »
—>The Fed cut interest rates by half a percentage point this afternoon, citing "tightening of credit conditions" that have the potential to "intensify the housing correction." More »
—>Foreclosures "zoomed" in August, up 115% from last year and 36% from July according to the newest numbers from RealtyTrac. This is the beginning of one of three remaining waves that will hit the market in the next year. This wave is expected to peak in October as 2 million 2/28 ARMs reset to market rates and an estimated 600,000 homeowners can no longer afford their payments.More »
—>USAToday is reporting that US stock funds, once the darling of investors, aren't drawing dollars like they used to. More »
You don't have to spend $30 at Petco to gussy up your small dog in embarrassing winter wear, says the MAKE blog. Just find an old argyle sock and follow their simple, six-cut pattern. Warning: it makes a hat, too! [makezine.com] More »
—>Bad news for Southern California; home sales in August dropped to a 15-year low according to the LA Times. Sales plunged 36% from last year and 71% of Southern California zip codes are reporting declines in housing prices. More »
``The housing market is bad and is going to stay bad for some time,'' said Zach Pandl, an economist at Lehman Brothers Holdings Inc. in New York, who predicted a 3 percent drop. ``This number does not look good for existing home sales for August.'' More »
—>Target and Lowe's cheered everyone up by announcing that they're doing just fine in the "tough selling market" that Home Depot was so worried about. More »
"If enough financial pressure is placed on Countrywide or if the market loses confidence in its ability to function properly then the model can break, leading to an effective insolvency," Bruce wrote. "If liquidations occur in a weak market, then it is possible for Countrywide to go bankrupt." More »
Economy-class passengers have had to settle for being packed into tightly regimented reclining seats for extended periods of travel, which have been blamed for causing potentially fatal blood clots known as deep-vein thrombosis, or DVT, in susceptible individuals. More »
—>"They always get you on the floormats." Pricing out a car online before visiting a dealership, and seeing the range of options available, is a no-brainer. But before you drop the coin on options like floormats, mudflaps, trunk nets, or whatever other easy-installation options strike your fancy, check eBay. Auto dealerships' parts departments are actually selling the same items on eBay, at a discount to the marked-up rates they charge new-car buyers. More »
—>What happens when easy credit, the lifeblood of our economy for the past few years, dries up? Consumer spending slows and people start mouthing the word "recession." More »
The subprime lending arm of tax giant H&R Block continues to hemorrhage money, to the extent that it's close to being unsalable, according to Bloomberg.
H&R Block Inc.'s mortgage unit lost a $1.5 billion credit line, falling ``dangerously close'' to the minimum amount demanded by a hedge fund firm that has agreed to buy the money-losing home lender. More »
Pending sales of existing homes dropped for the third straight month as troubles in the mortgage industry continue to disrupt the housing market. Figures released today show a 3.5% drop in May, following April's drop of 3.2% and March's drop of 4.5%. More »
The Conference Board, based in New York, said that the consumer confidence index fell almost five points, to 103.9, from a revised 108.5 in May, reaching the lowest level since August 2006, when the reading was 100.2. Analysts had expected a reading of 106. More »
Some of us owned a Geo Metro in high school and college, so we never had to worry much about this issue, but for those of you who have the ability to drive too quickly, this post is for you. More »
—>Congratulations New Jersey and New Hampshire! Your average price per gallon for that life blood we call gasoline is still under $3. New Jersey has the cheapest gas at an average price of just $2.93! How do they do it? More importantly, how did we managed to write this post without cracking a New Jersey joke? Because we're above that, people. Yes, we are. —MEGHANN MARCO More »
—>Sales are down by record numbers compared to last year, when Easter was in April, according to the San Francisco Chronicle.
Sales at stores open at least a year, known as same-store sales, fell by a record 2.4 percent in April, the worst since the International Council of Shopping Centers started tallying the monthly numbers in 1970.
Ouch. Some stores were hit harder than others. Perpetually money hemorrhaging discount clothier Old Navy lost an eye-opening 20%. Walmart was down 4.6% and Target 6.1%. More »
—>This site, when it all comes down to it, features the CSR as protagonist. Sometimes he's the hero, bending company bureaucracy, flouting his own training because he feels sympathy. More often, he's the anti-hero, speaking in circles and thwarting any attempt to get satisfaction from a customer. But it's all about the CSR. More »
—>Cigarettes costs society $167 billion dollars a year in health costs and lost productivity. Sweet liquid bread costs us $185 billion dollars a year. McDonald's, Burger King, Wendy's? $115 billion. And indulging in carnivorism alone costs over $1 trillion a year. The tab of costs to our economy, according to research by various interests groups, is truly astronomical. More »
—>This is only linked by the ostensibility of a magic conceptual rainbow to the sort of stories Consumerist usually posts about, but it is interesting enough that we're going to post it anyway. City Pages has a fascinating Q&A with freeway exit ramp beggars, asking them the following questions: What's the best job you ever had? What's the worst job you ever had? What's the last job you had? What's your dream job? More »
