US economy http://www.wisebread.com/taxonomy/term/1546/all en-US 9 Reasons Why the U.S. Economy Is Kicking the World's Butt http://www.wisebread.com/9-reasons-why-the-us-economy-is-kicking-the-worlds-butt <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-reasons-why-the-us-economy-is-kicking-the-worlds-butt" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/children_race_000029170966.jpg" alt="Why the U.S. Economy Is Kicking the World&#039;s Butt" title="Why the U.S. Economy Is Kicking the World&#039;s Butt" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It may be hard to believe, but the U.S. economy is giving the world a run for its money. Compared to most major developed nations, the U.S. is out-performing in terms of most major economic indicators. It seems we've managed to escape the grip of the Great Recession more quickly (and with perhaps less lasting damage), than many other wealthy countries. Read on to learn why today's American economy is the envy of the world.</p> <h2>1. Higher GDP Growth Rate</h2> <p>The U.S. economy's <a href="http://www.tradingeconomics.com/country-list/gdp-annual-growth-rate">2.4% GDP growth rate</a> in 2014 was the best since the recession &mdash; and it's expected to grow an even stronger <a href="http://www.forbes.com/sites/samanthasharf/2015/01/30/u-s-economy-grew-2-6-in-fourth-quarter-2-4-in-2014/">3.4% in 2015</a>, according to Forbes and the Economist Intelligence Unit. Our GDP growth also exceeds that of many other developed nations; the Euro area grew by a modest 0.9% in 2014, while Japan's economy actually shrank by 0.8%. And while emerging market powerhouses like China are still clocking growth rates of over 7%, this is a lower level of growth for them that actually poses some concern for their economic prospects. The U.S. economy, meanwhile, is on an upward trajectory.</p> <h2>2. Lower Unemployment Levels</h2> <p>Greece's unemployment is over 25%. France's is over 10%. Even Canada and Australia's are over 6%. But the <a href="http://www.tradingeconomics.com/country-list/unemployment-rate">American unemployment rate</a> currently stands at about 5.5% &mdash; a marked decline since its peak of over 10% during the worst of the recession, and a good deal lower than many other developed nations'.</p> <h2>3. Stable Inflation</h2> <p>Both too much inflation, and its opposite, known as deflation (or negative inflation) are of concern to economists. That's because stable prices are essential for maintaining a healthy rate of growth and employment. During the Great Depression of the 1930's, for example, some years clocked deflation of about 10%. Meanwhile, the recession of the early 80's came packed with whopping inflation rates some years of over 13%!</p> <p>So, it should come as no surprise that America's relatively stable <a href="http://www.usinflationcalculator.com/inflation/historical-inflation-rates/">2014 inflation rate of about 1.6%</a> is the envy of other developed countries &mdash; such as many in the Euro area, where negative inflation has developed. In fact, some economists say the U.S. could actually stand to have a little more inflation for optimal results.</p> <h2>4. Resource-Rich Economy</h2> <p>The political instability in places like Venezuela, the Middle East, Ukraine, and Russia terrify many countries who rely upon their energy exports to fuel their economies. But it isn't only oil that's a concern &mdash; grains, food products, and a variety of other raw materials or agricultural good imports are also important to many countries who don't produce enough of their own. The U.S. finds itself in an advantageous position in this regard, thanks to its ample domestic supply of many essential resources.</p> <h2>5. Younger Population</h2> <p>A younger population means many things. It is more dynamic and innovative, leading to new ideas and companies. There are more able-bodied workers to fuel our industries. And of course, having a larger supply of younger workers is also a buttress for social programs, such as Social Security, which are largely financed by their contributions. Many European nations and Japan are rapidly aging, and face dire economic consequences, as a result. The U.S. has higher birth and immigration rates to thank for this advantage.</p> <h2>6. Stronger Banking System</h2> <p>American regulators responded effectively to the banking crisis, instituting programs such as The Troubled Asset Relief Program (TARP) and requiring banks undergo scrutiny of their financial position via the so-called &quot;stress tests.&quot; The Fed also backed the acquisition of troubled or weaker banks, such as Washington Mutual, by larger banks, thus helping ensure the stability of the financial system. Today, the U.S. banking system is relatively strong and well-capitalized. Meanwhile, banks in parts of Europe, where stress tests took longer to be implemented, still face concern.</p> <h2>7. Effective Use of Stimulus</h2> <p>The stress tests and TARP are just a couple of examples of how the U.S. took the lead during the recession in ways many of its developed country counterparts didn't. The U.S. responded to the recession more quickly and aggressively, instituting strong stimulus measures to combat the downturn early on, including bond and asset purchases known as Quantitative Easing, sharply lowering interest rates, extending unemployment benefits, bailing out the now-profitable auto industry and financing shovel-ready projects. Europe and Japan took much longer or didn't implement stimulus as aggressively; the result, some economists say, is a markedly weaker recovery in those countries.</p> <h2>8. Strong Dollar</h2> <p>Not everyone is thrilled by the strength of the U.S. dollar (exporters, for example, find it tougher to sell their wares abroad), but the strength of the dollar is great news for U.S. consumers, who enjoy cheaper prices on imported goods. The strong dollar is also evidence of America's relative economic strength (after many years of trading for less than the Euro, the two currencies are now nearly at <a href="http://www.xe.com/currencycharts/?from=EUR&amp;to=USD&amp;view=10Y">parity to the Euro</a>, for example). It's also partly based on the belief that we'll soon begin raising interest rates; a stronger economy means interest rates can finally rise, and higher rates draw more investors into the U.S. economy, thus boosting the dollar.</p> <h2>9. Strong Stock Market</h2> <p>&quot;The stock market is overvalued and due for a correction any day,&quot; say pundits. &quot;It's a bubble &mdash; people but stocks only because interest rates are so low and they can't get returns anywhere else.&quot;</p> <p>Even if those two statements were true, they still don't negate the fact that U.S. equity markets have been on a tear in recent years (the S&amp;P 500 and NASDAQ are both near <a href="http://www.thestreet.com/story/13063690/1/stocks-add-to-february-rally-as-nasdaq-hits-15-year-high.html">record highs</a>). And that's in part because investors from around the world still trust our companies and stock markets.</p> <p>But there's something else happening here, too: Merger and acquisition activity, as well as IPOs, are by some measures <a href="http://finance.yahoo.com/news/report-2014-u-ipo-activity-163600415.html">back to pre-recession levels</a>. That' the stuff the economy runs on &mdash; new companies being launched, and existing companies being bought and sold. That this type of activity is up is further evidence of trust not only in U.S. markets &mdash; but in the U.S. economy, as a whole.</p> <p><em>Are you benefiting from the strong U.S. economy? Tell us how in comments.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/janet-alvarez">Janet Alvarez</a> of <a href="http://www.wisebread.com/9-reasons-why-the-us-economy-is-kicking-the-worlds-butt">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-these-8-things-to-profit-from-the-improving-economy">Do These 8 Things to Profit From the Improving Economy</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/peak-debt">Peak Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/is-gdp-still-important">Is GDP Still Important?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/peak-debt-and-income">Peak Debt and Income</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-us-savings-rate-has-tanked-heres-why-that-matters">The U.S. Savings Rate Has Tanked — Here&#039;s Why That Matters</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Financial News Economy GDP growth US economy world economy Tue, 17 Mar 2015 21:00:12 +0000 Janet Alvarez 1344238 at http://www.wisebread.com How to Prosper Despite the Coming Economic Challenge http://www.wisebread.com/small-business/how-to-prosper-despite-the-coming-economic-challenge <div class="field field-type-link field-field-url"> <div class="field-label">Link:&nbsp;</div> <div class="field-items"> <div class="field-item odd"> <a href="http://www.openforum.com/articles/how-to-prosper-despite-the-coming-economic-challenge" target="_blank">http://www.openforum.com/articles/how-to-prosper-despite-the-coming-economic-cha...</a> </div> </div> </div> <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/small-business/how-to-prosper-despite-the-coming-economic-challenge" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000016272554Small.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="166" /></a> </div> </div> </div> <p>Many economies face difficult times in 2012. But your fate does not have to be directly correlated to any of them. By continuing to solve problems for your customers and by adding more value than they will ever expend on your product or services, you can make your business a contrarian, and likely part of the reason world economies can have any hope of recovery!</p> <p>At a recent conference <i>The Economist&rsquo;s</i> Economic Editor <a href="http://www.economist.com/mediadirectory/zanny-minton-beddoes" target="_blank">Zanny Minton-Beddoes</a> discussed the state of the world economy. She warned her comments would not paint a very rosy picture, yet I will argue there is still so much opportunity for businesses to grow and succeed.</p> <p>Here are four issues Zanny suggested will carry into 2012 followed by my thoughts on how you can navigate around, over, or even through them to achieve success.</p> <p><strong>1. US Debt to GDP Exceeds 100 Percent</strong></p> <p>The United States continues to creep closer to insolvency than financial health. For the first time since 1947, the <a href="http://www.foxnews.com/politics/2011/08/04/us-debt-reaches-100-percent-countrys-gdp/" target="_blank">United States&rsquo; Debt to GDP exceeded 100 percent</a>. That means the total gross economic value America can produce in a year will no longer cover the entire debt load to which this country is obligated. Normal businesses would be bankrupt before they even reached 50 percent debt to annual inflows.</p> <p><strong>2. Mortgage Debt Overhang</strong></p> <p>Thanks to recent declines in real estate values and over-aggressive lending practices, over 20 percent of households in the United States owe more on their homes than they are worth. It used to be worse, but this will continue to be a drag on many industries and the economy as a whole for years to come.</p> <p><strong>3. Political Paralysis</strong></p> <p>Nothing is more frustrating about America&rsquo;s struggling economy than the inability of its government to get anything meaningful or productive done to improve the situation. While each party seems content to align themselves on the far ends of the politicalspectrum, they have forsaken the political middle ground where progress and improvement needs to happen. With a big election year ahead, the stalemate seems destined to continue into 2012.</p> <p><strong>4. Europe Has Its Own Challenges to Overcome</strong></p> <p>If you think the United States&rsquo; debt to GDP is bad, consider the insolvent country of Greece at over 145 percent. So long as the European Union is at risk with Greece, Italy, and potentially others, America&rsquo;s capital and debt markets, and, consequently, its economy, will still struggle, despite an arguably faux increase in the value of the dollar.</p> <p><strong>How to Prosper Anyway</strong></p> <p>Before you get too overwhelmed with these problems, there is still a long list of companies that are succeeding anyway. How? They recognize these economic issues are generally outside of their control and influence, and they charge forward in spite of what they hear in the mainstream media and from other business owners who continue to blame the economy for their problems. Here are some suggestions to make sure you&rsquo;re included among the companies that thrived despite the macro-economic woes.</p> <p><strong>1. Put Your Head Down and Go to Work</strong></p> <p>As simple as this may sound, it really works. Turn off the news, shut-out the doom-and-gloom, and focus on what you can actually control. Find new markets for your existing products. Develop innovative products and services. Get a grasp of the key performance drivers of your business and train your thoughts and actions to improve those metrics.</p> <p><strong>2. Micro-Manage Your Cash Flow</strong></p> <p>Your business needs cash like your body needs blood. Businesses that thrive in tough economies know their cash flow and keep a close eye on every inflow and outflow. They charge the right prices and collect money faster than competitors. They minimize all expenses, with an eye toward reducing waste, getting the best prices without sacrificing quality, and squeezing as much value as possible from every dollar spent.</p> <p><strong>3. Look to Emerging Markets</strong></p> <p>With many of the developed countries and economies flat or even contracting, most large companies are targeting emerging countries as their best prospects for growth. So should you.</p> <p><strong>4. Consider Buying another Business</strong></p> <p>Just as real estate values are down, business values are also coming down. If you&rsquo;ve considered buying a competitor, merging one of your vendors or suppliers into your existing business, or any other merger or acquisition strategy, this might be one of the best times to pursue such a course of action. If you can prove that such activity will pencil to profitable and sustainable growth, you&rsquo;ll likely be able to find relatively inexpensive <a href="http://www.openforum.com/articles/3-things-you-can-do-to-help-your-banker-say-yes" target="_blank">financing to help you with the transaction</a>.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ken-kaufman">Ken Kaufman</a> of <a href="http://www.wisebread.com/small-business/how-to-prosper-despite-the-coming-economic-challenge">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-reasons-why-the-us-economy-is-kicking-the-worlds-butt">9 Reasons Why the U.S. Economy Is Kicking the World&#039;s Butt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/peak-debt">Peak Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-the-last-person-to-leave-america-please-turn-out-the-light">Could the last person to leave America please turn out the light.</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/preparing-for-a-recession">Preparing for a Recession</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/economic-effects-of-pandemic-flu-in-a-recession">Economic effects of pandemic flu in a recession</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Small Business Resource Center Economy global economy national economy recession small business US economy world economy Mon, 19 Dec 2011 00:35:09 +0000 Ken Kaufman 825740 at http://www.wisebread.com Recession Journal VI: It's OVER!!!!!!!!!!!! Any Questions? http://www.wisebread.com/recession-journal-vi-its-over-any-questions <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/recession-journal-vi-its-over-any-questions" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/celebration-balloons.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>Are people grabbing strangers in the street and kissing them yet?</p> <p>Do you see the quivering, multi-colored ticker tape floating in the wind? How about the pitter-pat of feet toward the mall?</p> <p>Are the talking heads flailing their arms with tales of you winning and the terrorists losing with your purchase of a new smart phone or a plasma television?</p> <p>Are you happy now?</p> <p>I ask these things because it&rsquo;s finally over, technically, officially &mdash; the recession is over.</p> <p>The latest U.S. Commerce Department figures reveal that America's economy grew at a 3.5% pace in the third quarter, beating economist expectations and turning in the best growth numbers in two years.</p> <p>For any of those still feeling the personal blues and responding to this jargon with a resounding &lsquo;whaaaaa,&rsquo; any positive gross domestic product growth after consecutive quarters of contraction or negative GDP, signals a technical, if not literal, end to the recession.</p> <p>In this case, the latest GDP figures ended four straight quarters of negative GDP growth.</p> <p>Indeed a relatively bullish equity market &mdash; with duller horns than recent years but still bullish &mdash; and respectably performing bond market, along with government stimuli and small surges in consumer cars and home purchases, is responsible for the growth.</p> <p>So I&rsquo;m checking in with you, how do you feel? Feel good? Okay, you sitting down?</p> <p>Good.</p> <p>Well here&rsquo;s what our &quot;post-recession&quot; looks like right now.</p> <p>In the same week that good GDP data pulled the United States out of a recession, there's also mixed to bad news where other economic indicators are concerned.</p> <p>For one, consumer confidence is down.</p> <p>I asked you how you were feeling, how come you didn&rsquo;t tell me?</p> <p>The so called &quot;current conditions&quot; indicator from the Conference Board, which was also recently released, fell to 20.7, and is near its lowest level in 26 years.</p> <p>This is due to the continually lackluster labor market, where the current jobless rate of just under 10% &mdash; 9.8% to be exact &mdash; is the highest since 1983.</p> <p>Okay I know that sucks, but are you comfortable?</p> <p>Apropos, the ABC Consumer Comfort Index, also recently dropped on investors like it&rsquo;s hot, indicates that consumers are as uncomfortable about current conditions and about spending as they were during peak levels in discomfort this summer.</p> <p>And of course, we found out, in that same fateful week that consumer spending had nosedived in September by the largest amount in nine months. And incomes, to say nothing of disposable incomes, were flat across the board.</p> <p>Still happy?</p> <p>No, no, sit down, this&rsquo;ll only take a bit longer. Cop a squat.</p> <p>Further &mdash; yes this came out the same exact week too &mdash; while the S&amp;P/Case-Shiller home-price index climbed 1% from the prior month, seasonally adjusted, after a 1.2% increase in July, sales of new U.S. homes unexpectedly fell in September.</p> <p>The fall of home sales points to fear about lingering foreclosures and the end of tax credits for home buyers that could hamper a housing industry recovery.</p> <p>Speaking of foreclosures, the U.S. Census Bureau &mdash; yes recently they said this &mdash; the number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier.</p> <p>Meanwhile durable goods orders are up, but continued high unemployment looms in the shadows, as does the potential for a wild correction in commercial real estate.</p> <p>Additionally, buried in the basement of the Commerce Department's glowing is data that reveals the inflation-adjusted disposable personal income of consumers falling fell 3.4%, almost the same percentage of positive GDP growth.</p> <p>Don&rsquo;t get mad at me, I&rsquo;m just being real.</p> <p>Okay, put the torches and pitchforks down. I repeat, we <i>are</i> officially out of a recession folks.</p> <p>But the long-term effects of new or amended spending habits, our country&rsquo;s personal and government debt and how we respond now that we&rsquo;re out, will determine our personal and collective future.</p> <p>Do you plan to get out there and make something happen? Do you plan to wait until the coast is clear? How has your philosophy changed, if at all?</p> <p>I know, I know, more questions but as Ken Mayland, president of ClearView Economics pointed out to me in a, to belabor the point, &ldquo;recent&rdquo; conversation, &ldquo;questions are all we have in the present.&rdquo;</p> <p>And the more we ask of our government and ourselves where fiscal and personal decisions are concerned, the more answers we have.</p> <p><em>This post was included in the <a href="http://www.thefinancialblogger.com/carnival-of-money-hackers-%E2%80%93-my-favourite-coffee-edition/">Carnival of Money Hackers</a>.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/jabulani-leffall">Jabulani Leffall</a> of <a href="http://www.wisebread.com/recession-journal-vi-its-over-any-questions">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/recession-journal-v-mind-the-gap">Recession Journal V: Mind, The GAP</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/peak-debt">Peak Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/recession-depression">Recession Depression</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-reasons-why-the-us-economy-is-kicking-the-worlds-butt">9 Reasons Why the U.S. Economy Is Kicking the World&#039;s Butt</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-donating-money-is-the-best-thing-you-can-do-after-a-natural-disaster">Why Donating Money Is the Best Thing You Can Do After a Natural Disaster</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Consumer Affairs Financial News economist recession US economy Sat, 31 Oct 2009 16:00:04 +0000 Jabulani Leffall 3778 at http://www.wisebread.com How to Deal with Recession Anxiety http://www.wisebread.com/how-to-deal-with-recession-anxiety <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-deal-with-recession-anxiety" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/7257266384_c0245e51bc_z.jpg" alt="anxiety" title="anxiety" class="imagecache imagecache-250w" width="250" height="250" /></a> </div> </div> </div> <p>The nation&rsquo;s economic recovery is anemic, with unemployment rates continuing to climb, but this doesn&rsquo;t mean that your household economy is in trouble. In all the news that I've read about the economy, the media fails to report that around 90% of the country that wants a job has one; small businesses are hiring; and that if you buy stock now, when the market goes back up, you&rsquo;ll be in an enviable position. <em>Recession</em>, even <em>economic depression</em>, is also a mindset. And there are millions of people in the US and around the world who are simply choosing not to participate in this downtrend.</p> <p><strong>Why do recessions cause anxiety?</strong> Because of our fear of uncertainty and the unknown. And then there is the media, which can provoke that anxiety. Local news reports have started running stories about people who have a complete year&rsquo;s supply of food on hand at all times for the coming depression. Employment security (or the lack thereof), investment certainty (or the lack thereof), inflation, and other factors all combine to create a sense of dread that the media elevates to panic. But you don&rsquo;t have to participate in the fear, the hype, the sleepless nights, or the hoarding. Here are a few simple (or not so simple, but effective) ways to prepare for any economic slowdown. These methods will help you to avoid participating in the recession and the fear mongering that prevail during such periods. (See also: <a href="http://www.wisebread.com/how-to-control-anxiety-and-start-enjoying-more">How to Control Anxiety and Start Enjoying More</a>)</p> <h2>Emergency Funds Are a MUST</h2> <p>The best way to combat uncertainty is to have a back-up plan. Back-up plans remove fear. If you had money to cover six months worth of household expenses (food, bills, house and car payments, etc.) in a high interest savings account &mdash; or even under your mattress &mdash; &ldquo;just in case&rdquo;, would that ease your mind about getting a pink slip? Would you work differently knowing that you had a Plan B? Increasing your savings &mdash; your &ldquo;rainy day fund&rdquo; &mdash; will ease your mind and give your family a strong financial footing. You may even be able to tell your boss &ldquo;thank you&rdquo; when the pink slip comes because then you'd be free to start your own small business or spend time at home with the kids or plant that garden you were meaning to, or do whatever it is you would like to do while you look for another job.</p> <h2>Pay off Debt</h2> <p>What would you do with an extra $1,000 dollars a month? Would you revisit your stock broker for advice on how to build your retirement? Or perhaps you'd like to <a href="http://www.wisebread.com/rethinking-the-early-mortgage-payoff">rethink the early mortgage payoff</a> and pay off your house. Or what about building up your emergency fund or taking a vacation? Would you stimulate the local economy by being a consumer? There's a lot that you can certainly do when you have an extra $1000 or more a month in income. Most American households pay anywhere from $800 to $2,000 a month toward debt (including car loans) and compound interest. But imagine having no debt to worry about &mdash; then even if you lose your job because of a layoff or pay cut, things wouldn't be so dire given that you don't have to make debt payments. If you're having trouble paying off debt, you may want to consider credit counseling or debt settlement as a last resort.</p> <h2>Keep Cash on Hand</h2> <p>If you are worried about a run on the banks, or your bank in particular, then keep a supply of cash on hand: just enough to buy food, water, and gas for a couple of weeks, no more. Should your bank fail, your deposits and surely, your high yield savings are insured though the FDIC for up to $250,000 and you will get your money back, eventually. Should the FDIC fail&hellip;well, getting money out of your bank will be the least of your problems if the Federal Reserve fails.</p> <h2>Don't Stop Investing</h2> <p>Warren Buffett (a close, personal friend of President Obama, if one believes campaign rhetoric), once said about investing: <em>&ldquo;Be fearful when others are greedy and greedy when others are fearful.&rdquo;</em> Well, right now should be the perfect time to invest because everyone and their brother is taking money out of the market and hiding it in a paper grocery bag in the back corner of the hall closet.</p> <p>Sure, you may lose a little of what you put into the market today, but when you continue to invest when the market is down, you can buy more stock than you could a year ago with the same amount of money. When the market goes back up &mdash; which it will &mdash; those who continued to invest with their discount broker during this time, when stocks are &ldquo;on sale&rdquo;, will be that much closer to reaching their financial goals.</p> <p><strong>Don't forget, also, that investing should be for the LONG TERM&hellip;</strong>not for just a couple of years. Remember that 80% of ANY rolling five-year period in the last 110 years has averaged up, and over 90% of any rolling 10-year period and each rolling 20-year period have shown overall gains. Thus, market hiccups don&rsquo;t look nearly as bad.</p> <p>When you make the conscious choice not to participate in the recession, suddenly the dire economic news does not seem so apocalyptic. If you do just a few things to protect your family &mdash; most important is paying off debt (and not accruing more) and putting aside an <a href="http://www.wisebread.com/figuring-the-size-of-your-emergency-fund">emergency fund</a> equivalent to at least six months of expenses &mdash; then the numbers given in the evening news, even if you are included in the latest round of layoffs, won&rsquo;t keep you awake at night.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/silicon-valley-blogger">Silicon Valley Blogger</a> of <a href="http://www.wisebread.com/how-to-deal-with-recession-anxiety">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/recession-depression">Recession Depression</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/peak-debt">Peak Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/when-to-use-savings-to-pay-off-debt">When to Use Savings to Pay Off Debt</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-step-by-step-guide-to-creating-your-emergency-fund">A Step-by-Step Guide to Creating Your Emergency Fund</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-the-last-person-to-leave-america-please-turn-out-the-light">Could the last person to leave America please turn out the light.</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance emergency fund pay off debt recession US economy Thu, 29 Oct 2009 13:00:05 +0000 Silicon Valley Blogger 3768 at http://www.wisebread.com Recession Journal Part III: How Low Can We Go and When Will We Get There? http://www.wisebread.com/how-low-can-we-go-and-when-will-we-get-there <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-low-can-we-go-and-when-will-we-get-there" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000008682804XSmall.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>As a business blogger, high-finance business journalist, business man and one who minds his business &ndash; who pretends to know what he's talking about &ndash; I pretty much always answer &quot;stay in bonds,&quot; when called upon for investment advice.</p> <p>I hate giving it so I don't. I tend to just pose more questions, as I do in all discourse, objectively presenting many sides of the equation. So people can make up their own minds</p> <p>After all there are two sides to every story and then there's the truth.</p> <p>So I thought I'd utilize the ever-changing world of telecommunications, in a figurative sense of course, to try to get at the most pressing question these days: when will this crappy economy turn up?</p> <p>The answer is, well, when it bottoms out.</p> <p>But when is that?</p> <p>Hold on let me check (ring ring).</p> <p>Hello economic bottom? Economists and forecasters called and left a message, again.</p> <p>They said they&rsquo;re still looking for you and you&rsquo;re still hard to find.</p> <p>Therefore indicators for recovery from and continued length of the current recession remain inconclusive.</p> <p>They also said, &quot;We hope to see you soon because you&rsquo;re neither here nor there.&quot;</p> <p>Indeed, the more economic information that comes out, the more guesswork there is. As of July 17, jobless claims are up to 554,000 &ndash; a sum that is less than June numbers but still up versus 524,000 in the previous week, according to FactSet Economics.</p> <p>Also as of June, the national civilian unemployment rate rose to 9.5%, the highest it&rsquo;s been year-to-date and average hourly wages are also down compared to last year and last month. Additionally Federal government debt is up to $11.5 trillion as of the end of June opposed to $11.3 trillion at the end of May.</p> <p>Yet there are a few bright spots. Home sales, building permits and monetary supply, through historically low interest rates, are all up.</p> <p>So now we can breathe a little bit right?</p> <p>Well, not so much. Those figures are up while consumer confidence and industrial production output, as of the end of last month, are still down.</p> <p>Why the disparity among all the leading indicators? And what does a stoppage of declining figures mean vis-&agrave;-vis inclining figures in the future?</p> <p>Enter the Federal Reserve, which this week released its Beige Book survey to arrive at forecasts based on statistical and anecdotal economic evidence. In the report, the Fed said that most of its 12 regional bank districts are seeing a slower pace of economic decline for the months of June and July but didn&rsquo;t go so far as to predict a turn around.</p> <p>To the glass-half-full soothsayers, this comes as an early sign that the worst of the worst economic doldrums since the Great Depression is closer to coming to a halt and that thereafter an ascent of the proverbial bar graph of growth will emerge once again.</p> <p>Such are the sentiments Fed chairman Ben Bernanke, who, despite seeing personal his assets take a 30% decline in 2008, is bullish on the broader economy.</p> <p>Bernanke recently told Congress that the economy&rsquo;s contraction &ldquo;appears to have slowed significantly,&rdquo; with demand and production showing &ldquo;tentative signs of stabilization.&rdquo;</p> <p>He echoes other policy makers such as New York Fed Chief William Dudley, who predicted that a modest recovery in housing activity and car sales coupled with fiscal stimuli from the government would give the U.S. economy moderate growth in the second half of this year.</p> <p>Then in the same speech this week, Dudley turned around and said &quot;the balance of risks is still tilted toward weakness in growth and employment and not toward higher inflation.&quot;</p> <p>The only grain of certainty to be gleaned from cautiously optimistic policy makers and from the Beige Book is that neither provides any tangible signs of outright growth.</p> <p>For instance the Beige Book found that retail demand was &ldquo;sluggish&rdquo; in most areas, and that auto sales were &ldquo;mixed.&rdquo; Manufacturing was &ldquo;subdued, yet slightly more positive.&rdquo; Meanwhile, according to the survey, non-financial services businesses are &ldquo;largely negative with a few bright spots.&rdquo;</p> <p>Yeah that's clearly the sign of recovery right? (Pshhaw!)</p> <p>Lastly, the most telling indicator, bank lending, &ldquo;was stable or weakened further&rdquo; in most loan categories across all 12 Fed districts, with tightened credit standards in at least seven districts.&nbsp; It looks like finding that elusive V-shaped recovery as it relates to the current economic downturn is going to take a bit longer, despite some sporadic cheerleading and sparsely positive numbers.</p> <p>Plus one must take into consideration that financial firms are still digging out of holes, which means credit will remain tight and in Dudley&rsquo;s words, for the near-term still &ldquo;limit the pace of the recovery.&quot; &nbsp;</p> <p>Suffice it to say, policymakers, analysts, investment managers and consumers will all be calling again next week, next month and perhaps even next year, looking for you, economic bottom.</p> <p>Are you still there?</p> <p>Well folks it's not there right now, act accordingly.</p> <p>&nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/jabulani-leffall">Jabulani Leffall</a> of <a href="http://www.wisebread.com/how-low-can-we-go-and-when-will-we-get-there">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-to-build-business-credit-when-youre-self-employed">5 Ways to Build Business Credit When You&#039;re Self-Employed</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-trump-bring-higher-interest-rates-and-inflation-consider-these-money-moves">Could Trump Bring Higher Interest Rates and Inflation? Consider These Money Moves</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/when-should-you-say-no-to-those-who-want-to-borrow-money-from-you">When Should You Say No to Those Who Want to Borrow Money from You?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/will-high-inflation-persist">Will high inflation persist?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/stag-hyperinflation">Stag-hyperinflation?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance federal reserve lending Manufacturing US economy Fri, 31 Jul 2009 12:00:11 +0000 Jabulani Leffall 3447 at http://www.wisebread.com Peak Debt http://www.wisebread.com/peak-debt <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/peak-debt" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/going-out-of-business_0.jpg" alt="Going out of business sign" title="Going Out of Business" class="imagecache imagecache-250w" width="250" height="190" /></a> </div> </div> </div> <p>Is there a limit to how much Americans can spend?  Clearly there is:  All they earn, minus savings and service on their existing debt, plus new borrowing.  Since the Bureau of Economic Analysis puts numbers on those very items, it&#39;s possible to see just how close we are to the edge.  In a fascinating paper, Ron Laszewski does exactly that.  The results are rather depressing.</p> <p>Laszewski has kindly let me post his <a href="http://www.philipbrewer.net/wpx/wp-content/uploads/2008/09/peak-debt-pd-020708.pdf">peak debt paper</a> itself on my personal website, so you can read it yourself.  What follows here is a quick look at his conclusions (with just a glimpse of the math that&#39;s in the paper).<br /> <h2>Quick overview of the analysis</h2> <p>Basically, what Laszewski does is turn that simple statement of the limit to spending--all you earn, minus saving and debt service, plus new debt--into an equation.  Then, he fits that equation to the historical data from the <a href="http://www.bea.gov/">Bureau of Economic Analysis</a>.</p> <p>Since income has been flat since the 1970s, increases in spending since then have had to come from somewhere else.  They came first from a decline in saving, and then from an increase in borrowing.  (Not surprisingly, these changes went hand-in-hand with a decline in interest rates.  If there&#39;s scarcely any return to savings, why save?  If there&#39;s scarcely any cost to borrowing, why not borrow?)</p> <p>In about 2005, though, the &quot;new borrowing&quot; term hit its maximum.  According to the data, Americans as a group had, by then, reached the peak in the rate at which they could take on new debt.  Unable to take on new debt at an increasing rate, growth in spending would have to shrink--and that is exactly what the data show.<br /> <h2>What does it mean?</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u203/purchasing-power-graph.png" alt="Graph of consumer purchasing power" title="Consumer Purchasing Power" width="400" height="268" align="right" />The depressing results that I mentioned at the beginning go beyond just a decline in the growth of consumer spending.  Under any plausible scenario, consumer spending actually drops--and, in fact, drops by quite a bit.</p> <p>Since consumer spending is a large fraction of the economy, a drop in consumer spending inevitably means a recession.  The analysis in this paper suggests a rather severe one.  </p> <h2>Alternatives</h2> <p>When I read an early draft of the paper, I suggested that things wouldn&#39;t really go along this path--people wouldn&#39;t just let the enormous debt load grind them down.  Instead, we&#39;d see a mixture of ways to eradicate the debt without paying it off (some combination of inflation and defaults of various kinds--restructurings, bankruptcies, debt holidays, etc.).</p> <p>Assuming that this little model reflects reality, it turns out that none of these things really make much difference.  Under every scenario that we&#39;ve been able to think of, consumer spending declines sharply--and remains depressed for decades.</p> <h2>A model</h2> <p>It&#39;s important to note that what Laszewski has created is a <strong>model</strong>.  It&#39;s a little toy version of the economy that you can make changes to and set to run and see what the economy might look like.  The actual economy is a real thing.  Whether the model reflects reality remains to be seen.</p> <p>However, after doing his initial analysis, Laszewski found some data on residential mortgage debt between 1913 and 1940, which let him do a similar analysis for that period.  Fitting the curves to that data shows that America hit peak debt in 1925, with the great depression setting in about 5 years later.  The equations fit the data very nicely--one piece of evidence that the model may well reflect reality.  (Laszewski&#39;s analysis is in Appendix A in the paper.)</p> <p>People who are familiar with the model of &quot;peak oil&quot; will see certain parallels here--because the data turns out to fit a logistic curve (as does growth oil production)--a fact that Laszewski notes in the text:</p> <blockquote><p>The shape of the rise in total debt shown is also very well fit by the logistic growth equation.  The rate-of-change in the logistic growth curve implies that new borrowing probably reached its peak in 2005 and is now in decline.  We will refer to the peak in the rate of accumulation of new debt as Peak Debt, in conformity with the popular use of the designation “Peak Oil” to refer to the maximum in the rate of petroleum production. </p></blockquote> <h2>What to do?</h2> <p>As far as what to do in managing your affairs, I&#39;m afraid I don&#39;t have much in the way of new suggestions.  Certainly, avoid running up new debt of your own.  Be concerned that many other people&#39;s debt is not all going to be paid back, and let that fact guide your decisions about where to invest.</p> <p>Arranging your life so that a sharp and long-lasting decline in consumer spending won&#39;t destroy both your job and your investments at the same time is a most excellent idea--I wish I were in a position to give you some more specific suggestions about just how to do that.</p> <p>If you&#39;re at all interested in the math, I strongly suggest that you read the <a href="http://www.philipbrewer.net/wpx/wp-content/uploads/2008/09/peak-debt-pd-020708.pdf">peak debt paper</a>, rather than relying on my analysis.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/peak-debt">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/another-path-to-recovery-higher-incomes">Another path to recovery: higher incomes</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-new-normal-economy">The new normal economy</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/recession-depression">Recession Depression</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/recession-journal-part-i-fast-money-in-the-09">Recession Journal Part I: &#039;Fast&#039; Money in the &#039;09</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/whats-the-big-deal-about-banks-refusing-to-lend">What&#039;s the big deal about banks refusing to lend?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Debt Management Financial News consumer spending credit debt economics Economy peak debt recession US economy Fri, 19 Sep 2008 09:13:01 +0000 Philip Brewer 2440 at http://www.wisebread.com Recession Depression http://www.wisebread.com/recession-depression <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/wisebread_imce/crash_small.jpg" alt=" " width="150" height="200" /></p> <p>Yesterday&#39;s market &quot;correction&quot; had a lot of investors experiencing acute arm pain as they clutched their chests, watching the Dow Jones average plummet over 200 points in the course of about 2 seconds. The swiftness of the drop was <a href="http://www.chicagotribune.com/technology/sns-ap-wall-street-what-happened,1,4784591.story?coll=chi-bizfront-hed">attributed to a computer glitch</a>, which isn&#39;t exactly reassuring, either from a technological standpoint (how did that happen???!?!) or a practical one (it <strong>still</strong> dropped over 500 points, right?). The <a href="http://www.sse.com.cn/sseportal/en_us/ps/home.shtml">Shanghai index</a> correction was the obvious impetus for the drop, and that makes me feel even worse.</p> <p>I don&#39;t have much dough invested in the stock markets, save for a paltry sum that fluctuates in my IRA, so I wasn&#39;t as concerned about the drop as say, my dad, whose entire 401k is directly affected by market swings.</p> <p>Despite this, I was definitely clutching my chest when I heard that former Federal Reserve Chairman Alan Greenspan <a href="http://www.baltimoresun.com/business/bal-bz.greenspan28feb28,0,6642246.story?coll=bal-business-headlines">predicted a recession</a> for the US economy. <a href="http://www.foxnews.com/story/0,2933,178699,00.html">Some economists</a> have been <a href="http://www.ft.com/cms/s/bc55913a-27cd-11db-b25c-0000779e2340.html">predicting a recession for a while</a>, based on the <a href="http://money.cnn.com/magazines/fortune/fortune_archive/2006/11/13/8393160/index.htm">housing slowdown/slump</a> or other indicators that most of us don&#39;t think about much. <a href="http://www.latimes.com/business/la-fi-economy28feb28,1,964658.story?coll=la-headlines-business">Other economists with actual jobs</a> have predicted that a full-blown recession is not, in fact, likely, but it certainly got me thinking: how does one prepare for the possibility of a recession?</p> <p>There&#39;s lots of info out there on how to survive a <a href="http://www.ft.com/cms/s/bc55913a-27cd-11db-b25c-0000779e2340.html">recession as an investor</a>, but what about us regular Joes who are simply worried that we won&#39;t have a job should the economy turn southward?</p> <p>Well, there are some <a href="http://www.amazon.com/Conserve-survive-recession-experts-say/dp/B0008INZYC/sr=1-8/qid=1172699867/ref=sr_1_8/102-1803238-5069756?ie=UTF8&amp;s=books">articles</a> and <a href="http://www.insomniacpress.com/title.php?id=1-894663-24-1">books on the subject</a>. Some <a href="http://mark-watson.blogspot.com/2007/01/what-to-do-to-survive-recession-build.html">bloggers</a> are giving it some serious thought and have their own ideas on the subject. <a href="http://www.sciforums.com/showthread.php?t=62383">Forums</a> are filled with helpful (and not-so-helpful) tidbits. Paul Kirvan penned <a href="http://findarticles.com/p/articles/mi_m0CMN/is_n12_v28/ai_11943308">some advice back in 1991</a> regarding this exact topic, when it may have been even more relevant than today.</p> <p>Here are some ideas that I am exploring:</p> <ul> <li><a href="http://www.queercents.com/2007/02/22/build-a-business-while-keeping-your-day-job/">Start your own business</a>. Be prepared to start working on a consultant or freelance basis if you lose your permanent job, and get some great tax write-offs in the meantime.</li> <li>Look around your workplace and find ways to make yourself more useful. Job security is when no one else can do everything that you are doing.</li> <li>Know ahead of time if you qualify for unemployment. If you don&#39;t, look into that emergency savings account that you&#39;ve been meaning to get started for the past 6 years.</li> <li>Take the classes that you need to take now. Make sure to include the costs of continuing education when you file taxes. You can probably make a shift in your career with relative ease if you pick up a few new skills or take a risk and try out a new field altogether.</li> <li>Develop a love of peanut butter and jelly sandwiches.</li> <li>Get a roommate (shudder).</li> <li>Join the <a href="http://sfcompact.blogspot.com/">Compact</a>. Not sure if I WANT to do this, but I might have to at this rate.</li> <li><a href="/balancing-act-the-perils-of-budgeting">Budget</a>. Budget. Budget.</li> <li>Chose a hobby that will actually promote your career. Volunteer for a professional society or nonprofit organization that corresponds to your work. Life shouldn&#39;t be all about work, but these are great networking opportunities, should you ever need them.</li> </ul> <p>How about you guys? Are eBay careers the way to go? Do you have any ideas for recession prep besides what we normally tout to our readers (Save, Budget, Buy Used, Library Card, etc.)?</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/andrea-karim">Andrea Karim</a> of <a href="http://www.wisebread.com/recession-depression">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/peak-debt">Peak Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-new-normal-economy">The new normal economy</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/preparing-for-a-recession">Preparing for a Recession</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-ive-been-trying-to-say">What I&#039;ve been trying to say</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/understand-capital-costs">Understand Capital Costs</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Financial News bull session China Dow Jones economics global trade job market markets NASDAQ prepare recession savings Shanghai stock market US economy Wed, 28 Feb 2007 22:26:37 +0000 Andrea Karim 307 at http://www.wisebread.com