Recession Briefing 11.19: Making America Run

What you need to know today to survive and thrive in the recession.

Americans are lacing up athletic shoes and signing up to run in 5Ks, 10-milers and even marathons in record numbers. Running “gives you something to control — you can’t control the stock market or the economy, but you can control your health,” said Ryan Lamppa with Running USA. (Agence France Presse)

With the national unemployment rate above 10%, and employed folks looking to bolster budgets by taking second jobs, the competition for seasonal retail, movie theater, package-delivery and other holiday posts is fierce this year. (USA Today)

A Human Rights Watch report on Cuba takes the government of President Raúl Castro to task for, among other things, jailing those without jobs. The report cited the cases of dozens of people charged with “dangerousness” for being unemployed. (New York Times/Economix)…

Bad Debt Settlement Companies

It can’t be said enough that debt settlement companies are a poor option if you’re strapped with overwhelming credit card debt. From the New York Times Saturday:

When you sign up, many firms require you to pay a sizable fee upfront. Or they may levy initial set-up and monthly fees, and charge a percentage of the amount they saved you. They typically advise you to stop paying your debts and tell you to put aside money each month in a separate account over a period of two or three years. That sum will eventually be used to negotiate a settlement, usually about 60 percent of what you owe. In the meantime, though, credit card companies continue to charge interest and late fees. The creditor may sue. And the phone will probably continue to ring incessantly. The companies can offer no guarantees — except that your credit score will drop.

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Recession Briefing 4.14

What you need to know today to survive and thrive in the recession.

Six months after taking a $10 billion bailout from the government, Goldman Sachs has posted a profit and is hoping to return the money — not least in order to escape heightened government scrutiny. (New York Times)

White House economic adviser Christina Romer expects that there will be more job losses in the coming months. Still, officials are detecting “small little signs that maybe some parts of the economy are stabilizing.” (Associated Press)

With the recession digging deep into Americans’ pockets, there is likely to be a large upswing in the number of first-time delinquent taxpayers. (Reuters)

Prices paid to U.S. producers fell unexpectedly in March after two months of gains, indicating the recession is keeping inflation under control. (Bloomberg)

If you come across a good article or blog post about the recession pass it on.

Recession Briefing 3.26

What you need to know today to survive and thrive in the recession.

“Tent cities” are popping up everywhere. There are reports of over a dozen such communities that have sprouted up around the country. (Huffington Post)

There was an unexpected rise in factory orders for goods like metals, machines and military equipment last month, according to new figures from the government. (New York Times)

Fundamental differences have emerged between U.S. and European approaches to restarting the global economy. The divide reflects differences in Euro-American cultures, institutions, and leadership. (Christian Science Monitor)

Recession Briefing 3.23

What you need to know today to survive and thrive in the recession.

The Obama Administration is hoping to round up as much as $1 trillion from private investors to support its plan to buy up banks’ toxic assets. The government plans to offer subsidies like low-interest loans to coax the private funds to invest. (New York Times)

With cuts looming at many businesses, workers are using less and less of their “flex time” and other benefits that allow them to work at home sometimes, and take family leave or paid sick days. (Washington Post)

The recession has stalled the building of skyscrapers around the world. Globally, work has been halted on 142, or 11 percent, of 1,324 skyscraper projects, including 29 of 301 U.S. projects. (Reuters)

Out on the Street: The Real Credit Crisis

Each week, “Joe the Trader” chronicles his experiences with life after Wall Street.

While it was old news, I was still left speechless by the article a fellow member of the He-Man’s Unemployment club recently sent to me. In early January, Newsweek published “The Case for Walking Away,” in which the author suggests that 2009 is the year to file for personal bankruptcy.

Don’t wait until it’s too late, the article advises. Indeed, “the right time to file for bankruptcy is when you’re financially stuck but still have assets to protect.” It is truly a sign of the times when a major news magazine is actually advocating such a thing.

The word credit is derived from the Latin credo, “to believe.” If integrity goes who will believe anybody? The current situation is truly a crisis of credit.