We've all heard the legends of Bigfoot and the abdominal snowman. How about the myth of the person who has paid off everything they own, including their car and house, and now live debt free? Haven't heard that one? No, me neither. Many companies, such as Whirlpool , are struggling and have been forced to lay off workers to stay afloat because, as they claim, fewer people are buying their stuff. No surprise.
The economy has been the big news of the week, up and down, up and down, I feel like I'm on a roller coaster.
In other news, PSU fans aren't letting the economy get them down.
And here's an interesting story on how the stock market and the economy are not one in the same.
Make sure to check out this week's podcast, where the business staff talks about what you need to know about TV's digital conversion.
Lately, members of the U.S. Congress has started to push for second stimulus package that could cost between $150 million to $300 million. First, let me start by stating that those massive funds will come from already-collected tax dollars. So, if the package is approved, the government will be giving you your money back to spend on stuff that your couldn't afford in the first place. Second, the timing of this package stinks.
So I just said about an hour ago on the blog gas prices have fallen a lot, down to $2.75. Well, I just saw $2.59 while running out to walk my dog.
So where do you think the bottom is? Will it actually get "cheap" again? And what exactly would a "cheap" price be?
A colleague of mine says gas isn't "cheap" until it falls below $2 per gallon for regular. And apparently a lot of you out there agree.
A couple-year-old local service that tries to hook up commuters with possible carpool partners send me a press release today, saying that it added 1,000 new participants since early September.
Commuter Services of South Central Pennsylvania, as it is known, now has 11,000 members. The growth is despite gas prices falling since early September to around $2.75 per gallon for regular.
So my question is this: Is this because people have the foresight on the interest in saving the environment to start carpooling? Or are people so scared about the economy that they are pinching the pennies they were willing to spend just a few months ago?
Every day there's news of whether the stock market is up or down. I may as well be reading whether I've lost massive amounts of money in my 401(k) or managed to gain back some of what was lost previously.
A few weeks ago when I was home for my cousin's wedding a bunch my aunts and uncles were talking about how they can't bare to look at their 401(k) statements anymore. They said it's just too troublesome.
Some of them are only a few years out from retirement, so I can imagine they must really be nervous.
I looked at mine the other day and it was just depressing. I guess I'm lucky though because I have many more years of money accumulating before I get anywhere close to retirement.
What about you? Have you been looking at your 401(k) lately?
I know I am.
Shafting close family members with no gifts this year would just be plain mean, but I need to do something to afford it.
Smarter has so far meant getting my mom's gifts taken care of at the Linens 'n Things going-out-of-business sale last weekend. But don't tell my mom, it might give her a hint about what she's getting.
I saw two gas stations owned by the same company no more than one mile from each other that had two different gas prices. One was $2.75. One was $2.79.
What gives?
As gas prices start to drop have you noticed or overheard people talking about loosening the purse strings?
It seems like now that gas is below three dollars some people seem to think it's cheap and are going back to their old, less restrictive habits.
I know I'm still trying to cut back. One big thing I do is limit the amount of days I go out for lunch. I try to pack at least four days each week.
Have you noticed anyone loosening the purse strings lately?
I was out of town this weekend for my cousin's wedding in Allentown. I had to fuel up before I headed out of town Thursday evening. I think about paid $3.25 per gallon.
When I got to Allentown prices were lower, ranging from $3.05 to $3.13.
But my entire family was shocked as we drove from the wedding to the reception and saw a gas station where prices were $2.94.
No, not Spring Grove. Chillicothe, Ohio, which usually votes the way the all-important Buckeye state does. Glatfelter purchased a plant there a few years ago and has struggled to make it a go there.
And now, it is the town politicos across the country are watching for which way the election is going to go.
Read about Chillicothe's politics here.
I can't think of a worse investment than a college education right now. Houses, cars and even AIG stock are at bargain prices, but the prices for degrees keep going up. And the resulting debt looks scarier by the day, considering the job markets.
Just look at the amount of debt students are taking on just to get a degree - $22,000 on average. That's more money than people pay for anything except their houses
I think this is just as dangerous as the mortgage mess. Sure it's less money than a house costs, but it's also debt taken on by people who are beginning their lives, and have absolutely no savings to fall back on.
I seriously think we need to rethink our education system in this country because of debt issues. After the mortgage mess, any system that convinces people they need something to live the American dream - and puts them in debt to get it - needs to be reconsidered.
What do you think?
So last week I was all ready to become a member of Citigroup, the people who were going to buy Wachovia. But then Wells Fargo made a better offer, and Wachovia like that deal better.
So the news came out that Wachovia was going to be bought by Wells Fargo instead.
I was caught off guard by the switch and hadn't really seen it coming, but thought, "Ok fine, now I'm going to be a member of Wells Fargo."
But now it's all a mess because Citigroup is filing papers in court saying Wachovia is breaking contracts, and Well Fargo is saying it is still buying Wachovia even though Citigroup is trying to stop it, and quite frankly I am having a Wachovia identity crisis.
I just want to know what my bank is going to be and be done with it.
Sorry about my rant. Feel free to share your own in the comments.
I got a chance to talk to someone over the weekend who didn't even know Congress passed the bailout, buy-in, or whatever word you choose for a $700 billion government intervention.
He's been busy working, and was chopping firewood when I went to visit Saturday afternoon, after finishing up a story. And for the record, he's my parents' neighbor and first cousin, once removed.
So what did he have to say about it all once I filled him in? Anger and disgust, but then, a simple perspective. Even during the worst economic crashes in American history, most people kept feeding themselves.
And in the end, that's all that really matters. Beyond that, anything else we lose are just cushy modern frills. I thought it was good perspective to have as everyone goes around yelling the sky is falling and earth is blowing up tomorrow.
It's been another depressing week of economy news, bank buyouts and government bailouts. Here's a rundown of what you've missed.
Congress passed the bailout and Bush signed it.
The Wachovia situation is such a mess.
Unemployment numbers are up.
Stocks started to climb.
And in case you missed it, you'll want to check out this week's podcast to hear Brent, Sean and myself chat about the implications of the bailout and whether or not we thought it would pass.
The picture above shows the jerseys of a few players on Manchester United, a British soccer team, featuring a sponsorship by the failed AIG.
When the news of AIG's failure broke, a friend of mine and I were wondering whether AIG would continue to sponsor the team. We both agreed it didn't seem like the company should be allowed to spend its money on sponsorships when it is being bailed out by the U.S. government.
An Associated Press article had this to say about the situation:
"For now, it appears that the players of Manchester United will keep the American International Group name on their uniforms. A Manchester United spokesman said there have been no discussions about AIG buying out the deal, and there are no plans for changes to the uniform. A spokesman for the insurer, Joe Norton, said 'nothing has changed' with the deal."
Let me know what you think about AIG's continued sponsorship in the comments.
