The Times Wants Your Tweets

As part of its Recession coverage, the New York Times is collecting survival tips from readers (for ordinary people, not for the newspaper itself). Some of the submissions we like:

Save on babysitting…start sleepover-pooling with other friends with kids. (sd, NYC)

Students: Don’t buy your textbooks on campus or even in a bookstore. You can easily find used copies online for much cheaper. Amazon, etc…

Out on the Street: Hope Springs Eternal

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

On March 15th, in a remarkable show of transparency for a Federal Reserve governor, Ben Bernanke was interviewed on 60 Minutes. He sounded much like Chance the Gardener from Jerzy Kosinski’s Being There. In the classic novel and later movie, a simple gardener is released into Washington D.C. after the death of the man he has spent his life working for. Taken in by an advisor to the president who mistakes his name for the patrician sounding Chauncey Gardiner, Chance charms everyone with his botanical observations, which are misinterpreted as sage economic, financial and political allegories. In the spirit of the season, Chairman Bernanke said he saw signs of economic green shoots emerging. I sure hope that his comments were more valuable than a rambling gardener’s.

Than again, I’m not big on hoping. As a professional investor, I knew that if I was ever hoping, I was in trouble. It was my job to assess risk. It was my job to examine the merits of an investment, to know it’s pros and cons, and most importantly, to know when the facts had changed and I needed to get out of my position…

Best Twitter Feeds for the Recession

Still getting used to the verb “tweet?” It seems like practically everyone is Twittering.

If you haven’t set up a Twitter account yet, here’s a good reason to do so: people are putting great information out there that can help you get through the recession. Everything from finding a job to shopping deals and the latest recession news. We combed the Twittersphere to find useful, unique and consistent feeds…

Tax Tips for the Unemployed

You already know that networking can help you find a new job. But you might not know that the IRS offers an assist, too. You can deduct many of your job-hunting expenses. That’s not that surprising, since it’s in the Internal Revenue Service’s best interest to have you earning taxable income. Uncle Sam’s tax help, however, does have its limits. Here’s what you need to know.

Itemizing required
You must itemize deductions on Schedule A to count your job-hunting expenses. That task is further limited by a threshold amount you must meet. Your job search costs are considered miscellaneous expenses. As such, they are deductible only when they, and all other allowable expenses in this category, are more than 2 percent of your adjusted gross income.

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.

Recession Briefing 3.5

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

The U.S. government has begun a program to provide help for distressed homeowners owing as much as $729,750. Mortgage payments for many will be reduced by as much as $1000 a month. (New York Times)

GM is warning that is faces possible bankruptcy if more government funds are not forthcoming. In order to get more, the company needs to convince the Treasury Department that it has a viable business plan. (Wall Street Journal)

February’s job loss numbers are expected to confirm fears of a deepening and prolonged recession. “Consumers and businesses are locked into a dysfunctional relationship, dragging each other down.” (BusinessWeek)

Recession Briefing 3.4

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

The recession is hitting almost every part of the U.S., and job loss disproportionately harsh on those without a college degree. An interactive map shows county-by-county unemployment figures. (New York Times)

Loan Do-Overs?: The Obama administration will begin testing a program of mortgage modifications to let struggling homeowners pay less each month. (CNN/Money)

A new report finds that 19.8% of homeowners in the U.S. owe more than their home is now worth. (Time)

Dealing with Debt: Credit Cards

No, you’re not imagining it—just as everyone in the country is more strapped for cash, lenders have been raising interest rates and fees on credit cards. Miss a payment and your interest rate could rocket to 30 percent; continue to carry a balance and you could be slapped with a $10 charge.

That’s bad news in the best of times; if you’ve been laid off, those are extras you simply can’t afford.

We’ve already shared the latest and greatest information on handling your mortgage, especially if you’re in a financial crisis. Here’s the most current advice on controlling your credit card debt. Get out before you become a victim of what some see as the next wave of the economic downturn.

Dealing with Debt: Mortgages

In this economy, things change fast. One day you have job, the next you don’t. Companies fold within days. Investments evaporate.

In a recent story about how to handle a layoff, we suggested that you take a look at your finances—particularly what you owe—so that you can start planning. But that actually holds true for everyone these days.

Most of us have some sort of debt. And even if you have a job, the bonus you normally rely on to pay off credit card bills has probably shrunk or vanished. Freelancers and consultants still have student loan obligations, even as their gigs are being cut. Many people are taking salary reductions, but continue to carry mortgages. And just how secure is your job, anyway?

Meanwhile, as credit markets shift at lightning speed, it’s not easy to find up-to-date information. So we’re doing it for you, compiling the most current advice on managing debt, starting with mortgages.

Traveling Tight: Don’t Get Fleeced by Currency Conversion Fees

Money’s tight. So every penny counts when you’re on the road…

Psst. You may be incurring up to 3% in currency-conversion fees when you travel abroad every time you use your credit card. In recent years, banks have started piling fees right on top of the standard 1% fee that Visa and MasterCard charge for foreign purchases. Why? Because they think you’re too jet-lagged to notice.