Ditching Your Home

It sounds so tempting: Throwing in the towel and saying goodbye to those overwhelming monthly mortgage payments and your underwater home. Starting anew with a home that’s more modestly priced (and valued) and a mortgage you can actually afford. It can seem like a pipe dream.

It isn’t, and it’s not entirely unreasonable to walk away from your home and mortgage. Enough people have weighed in on why it may make sense for you, and even urging you to take this option.

You Walk Away is one of them. The company’s daily blog is a lively and supportive read aimed at helping you become more comfortable with the idea. As long ago as December 2007, when the recession officially kicked off, You Walk Away was beating the drum for people to ditch their homes and default on their mortgages. The cheerful blog walks you through why it’s okay to walk away from your mortgage: “The lender did not loan you the money without intent to profit. The lender DID risk their money in order to make a profit. They created the terms. They should live with the terms they created.” YWA warns about the possible consequences of walking away: damaged credit for years; the anguish of having your home foreclosed upon; the judgment of others; wage garnishment…

Screwed: 1,450 in Iowa

A daily review of the employment fallout around the country and the world.

Today’s Total: 2,701

The closing of a hog plant in Iowa owned by Smithfield Foods will mean the loss of 1,450 jobs. … Columbus, Ga.-based TSYS plans to lay off 400 workers worldwide. … Some 338 layoffs are rolling out across the San Francisco Municipal Transit Authority, beginning this week. … Sitel will cut 250 workers at its Starkville, Miss., location. … Stanley Furniture Co. in Martinsville, Va., plans to lay off 200 employees. … One-third of its staff, about 50 employees, will be let go from Honolulu department store Shirokiya. … Luzerne County, Penn., will lay off 13 employees. … The Commerical Appeal newspaper in Memphis, Tenn., will cut 9 positions. …

Screwed: 4,000 at Philippine Airlines

A daily review of the employment fallout around the country and the world.

Today’s Total: 4,589

Philippine Airlines plans to lay off 4,000 workers to avoid bankruptcy. … In Turkey, Izmir Demir Celik Sanayi AS will cut 177 employees. … As part of a restructuring plan, Cadence Design Systems in San Jose, Calif., will lay off 120 workers. … The Moraine Berry Co. in Dayton, Oh., will see 105 employees let go as a result of a focus on digital operations. … Douglas Battery Manufacturing will cut 90 workers with the sale of its industrial battery unit in North Carolina. .. Meredith Corporation cut 45 employees. … Boeing laid off 36 employees in its NASA Kennedy Space Center location. … The Reno, Nev., fire department issued 16 layoffs on Friday. … Eight to 10 employees are expected to be laid off this week by the city of Juneau, Alaska. ..Up to 450 employees could be cut from the Des Moines school system, including 300 teachers, depending on the budget. …

The Year of One

Of all the year-ahead prediction lists we’ve seen out there, one caught our eye for its thoughtfulness and perception. Small Business Labs, the blog of Emergent Research, a trend analysis and forecasting firm, sees a coming year of going one’s own way, from individuals to businesses. The theme for this year may be “solo.”

1. The Shift to Contingent Workers Turns Employees into Entrepreneurs: Employers large and small are shifting from full-time employees to part-timers, freelancers, outsourced services, partnership arrangements and other forms of contingent workers. They are doing this to save money and increase business flexibility. Despite the economic recovery, 2010 will see the contingent workforce grow as companies continue to limit hiring of full time staff. Many of these contingent workers will create or work for small businesses.

2. Personal Businesses on the Rise: Enabled by the Internet and low-cost information technology, the number of personal businesses (one employee businesses) has grown twice as fast as the overall economy over the last decade and exceeds 22 million. With the unemployment rate remaining high and traditional employment options limited, 2010 will be another year of strong growth in the number of personal businesses. The growth in personal businesses will also result in an increase in overall small business formation and numbers in 2010.

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The Recession Will End… When Housing Gets Sorted

Just a few short weeks ago, it felt like we were through the worst of it – jobs seemed to be improving, retail sales were strong, banks were paying back their loans to the government. But then one niggling little issue emerged: the housing market is hardly in good shape.

The big question is when to buy. Prices surged in the summer and early fall, and so did sales, thanks to a government tax credit. That credit is due to expire in April, which, coupled with rising interest rates, could put the market at a standstill. Surely prices may fall, benefiting buyers, but there may be fewer homes on the market. And who wants a mortgage at a higher interest rate – if you even qualify? Banks are becoming more stringent, recommending mortgages be capped at no more than three times one’s annual income, with no less than 20% down…

Stop Reading and Start Sleeping

Want to get back on your feet in 2010? Forget a better (or simply a) job, salary or place to live. The key to success lies in sleep, according to the Huffington Post, which is going crazy over shut-eye time. In a series of posts, the website notes that sleep improves memory, keeps you healthy, lowers your stress levels, and increases performance on the job. Arianna Huffington has even set up a “sleep challenge” for a month. But our favorite idea is an on-the-job nap program proposed by Ellen Galinsky, president of the Families and Work Institute. Who wouldn’t want that? Those out of work are in an even better spot to take up the challenge!…

Screwed: 3,000 in Romania

A daily review of the employment fallout around the country and the world.

Today’s total: 4,642

In Romania, the government has decided to cut 3,000 workers who provide child care and elderly assistance. … Lockheed Martin will eliminate 1,200 positions as part of a restructuring. … Debswana, a joint venture between DeBeers and Botswana, will lay off 1,000 workers at the diamond operation there. … Call center company Sitel will close a Georgia office, putting 302 employees out of work. … United Airlines will lay off 140 workers and demote 100 additional workers to part-time status. …

Recession Lexicon: Femterprise

n./ Female-run business. Also, fempreneur.

Much has been made of the fact that women fared somewhat better in the recession than men (resulting in a mancession), particularly when it came to layoffs. But new data shows that the coming decade will also see a steady increase in the number of businesses started by women….

The Recession Really Ends… This Year. Period.

Okay, so here we are: 2010. According to even the most doomsaying of economists—none less than Nouriel “Dr. Doom” Roubini—this is when things get better.

“I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If, as I predicted, the recession is over by the end of the year, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end.” (July 16, 2009, via RGE, Recessionwire)

Whether you agree with Larry Summers that “everybody agrees that the recession is over“…

Screwed: 678 at Virginia Dept. of Transportation

A daily review of the employment fallout around the country and the world.

Today’s total: 825

Nearly 700 workers at the Virginia Department of Transportation will be laid off this week. … The Longaberger Company in Newark, Ohio has plans to cut 125 of its staff. …