Best Moves in a Bad Economy Blog

Earlier this month, Federal Reserve Chairman Ben Bernanke said the recession should weaken by the end of 2009. The recession began in December 2007, making this the longest recession  since The Great Depression.  The recession of 1980 - 1982 was technically two recessions: January 1980 to July 1980 and July 1981 - November 1982. Combined, these were only 22 months, although the recessionary period lasted for three years. (Source: NBER) Read More...

If you are considering bankruptcy, the American Bankrutpcy Institute can help you make that decision. Bankruptcy may help you if your total debt, (not including car or house loan) is more than you could pay in five years. It could also help if your wages have been garnished or your bank account has been attached.  Read More...

Mortgage refinancing in 2009 will be almost 1 1/2 times greater than in 2008, showing the first increase in four years.  Refinance activity has driven a 62% increase in total mortgages to $2.62 trillion in 2009. Mortgage rates remain low, despite an increase in Treasury yields, but this may not last. Read More...

Foreclosures were filed on 342,028 homes in April, the highest since RealtyTrac began keeping records in 2005. However, this figure was only 1% higher than March.  Filings jumped because Fannie Mae, Freddie Mac, some states and many banks lifted their moratoria on foreclosures. (Source: RealtyTrac, Foreclosure Activity Remains at Record Levels in March, May 13, 2009) Read More...

A new bill will require credit card companies to provide additional benefits to their customers. Companies must post their agreements on the Internet and let customers pay their bills online or by phone for free.  Interest rates can not be raised until the customer is more than 60 days behind on payments, and the company must give 45 days notice. Once the minimum balance is paid, the lower rate must be restored within six months. Companies would have nine months to put these measures into effect. (Source: AP, Credit Card Requirements, May 19, 2009) Read More...

On  March 5,  2009, the Dow reached this bear market's bottom, closing at 6,594.44. Since April, it has remained above 8,000. However, it is much too soon to say that the bear market is over and a new bull market is beginning. It is normal for the stock market to rally for months after setting a new low. Many experts believe the Dow must retest the March low without going below it. It also needs to close above 9,034.69, the high reached on January 2, 2009. Read More...

In April, prices were down .7% from the prior year, according to the Consumer Price Index report. This was slightly more than the .4% drop in March, which was the first year-over-year decline since 1955.  The drop was due to a 25% decline in energy prices, which also caused a 13% decline in transportation costs.  Food and medical costs were up 3% since last year. Read More...

Home sales for the first quarter were down 6.8% from a year ago.  Half of the sales were first-time buyers attracted to the low prices of these foreclosed properties. The National Association of Realtors estimates that the Stimulus Package will add about 900,000 additional home sales later this year. This would reduce inventory to an 8-month supply, down from an 11-month high earlier this year.   Read More...

In April, the economy lost 611,000 jobs, and unemployment rose to 8.9%, a rate not seen since 1983. Since the recession started in December 2007, the economy has lost 6 million jobs. The only sector adding jobs is health care and education. Even so, only 19,000 jobs were added in this area. Read More...

In March, Americans slashed their credit card debt by 6.8%. This is the second largest drop since the Federal Reserve began keeping such records. An increase in unemployment means that many people are buying less on credit for fear of losing their income. People are also saving more, as the savings rate has increased to 4.2%. Credit is less easy to obtain as banks continue to tighten standards for issuing credit.   (Source: CreditCards.com) Read More...