Coming down to earth

Two months after his inauguration, Barack Obama can already point to some impressive achievements. He has passed a $787 billion stimulus bill—the biggest in American history—and outlined an ambitious agenda for reforming health care and education, tackling entitlements and pushing “green” energy. He has also delighted his admirers at home and abroad by beginning to reverse George Bush’s policies on such controversial subjects as talking to Iran, global warming, the treatment of enemy combatants and stem-cell research.

Unfortunately, Mr Obama’s critics can also point to a striking record of failures. A startling number of his nominees for senior positions have imploded. The upper ranks of the Treasury remain empty in the midst of the most serious recession since the 1930s. Warren Buffett, an early Obama-supporter and a man legendary for holding on to stocks that he has backed, thinks that the president is taking his eye off the ball. Andy Grove, a former head of Intel, describes the administration’s performance as “ineffectual”. Even the commentariat, which swooned over Mr Obama’s campaign, is running out of patience.

Many of Mr Obama’s achievements have a Potemkin quality. He signed a $410 billion spending bill that contains 8,570 earmarks (directing funds to specific projects), despite his pledge to reduce the practice. His budget rests on unrealistic assumptions about America’s future economic growth and about the cost of his spending programmes. He throws out numbers like confetti: Peter Orszag, his usually impressive budget director, made a dismal job of explaining to Congress where Mr Obama intended to find the $634 billion “down payment” he promised for health-care reform.

Mr Obama’s erratic performance is partly the result of the rollercoaster world he finds himself in. Few presidents have come to power with as much political capital. Mr Obama beat John McCain by seven points. His party has majorities of 39 seats in the House of Representatives and ten in the Senate. The administration can also draw on the brainpower and political muscle of a powerful network of liberal think-tanks and pressure-groups that were formed during the Bush years. But this understates his strength. His election represented a turning point in America’s bitter racial history. It also possibly coincided with the end of a conservative era that began with Ronald Reagan’s election in 1980.

At the same time Mr Obama confronts an unusually difficult set of challenges. America is in the grip of a recession that is crushing jobs and reducing demand at an alarming rate. Some of America’s most famous financial institutions have collapsed. General Motors is on the verge of collapse. The unemployment rate, which is already 8.1%, could hit double figures. The American political system is arguably more dysfunctional than ever, with the parties heavily polarised and the 24-hour-news cycle magnifying bad news.

All this means that Mr Obama’s first two months in office are difficult to evaluate. But a few things seem pretty clear. This is a strikingly ambitious president: he wants to be “transformative” in more than just the sense of being the first black president. But so far his presidency has been vitiated by a combination of incompetence and a willingness to fall back on the very tactics that he denounced as a candidate. Indeed, his desire to be “transformative” may be contributing to his problems, distracting him from the economic crisis.
The pragmatic liberal

Mr Obama has already outlined the most ambitious agenda for transforming America since the Reagan revolution: proposing universal health care, expanding the role of the federal government in education, tackling global warming and reducing America’s growing inequalities. This has ignited a fierce debate about his ideology. Is he an unreconstructed liberal who will provide the left’s answer to Ronald Reagan? Or is he a New Democrat, as he himself claims? The answer is probably a mixture of the two. Mr Obama is a pragmatic liberal, more confident about big government than Bill Clinton’s New Democrats, but less wedded to liberal solutions than many of the old lions in his party.

Ammunition for the critics

By the standards that obtain in the blogosphere, the duelling posts of Peter Orszag and Doug Elmendorf are pretty tame stuff. But they are still exciting, because Mr Orszag runs Barack Obama’s budget office and Mr Elmendorf heads Congress’s fiscal watchdog, the Congressional Budget Office (CBO). The debate over the budget hinges heavily on whose economic forecasts are more accurate.

On February 26th Mr Obama released an ambitious budget plan that boosted spending, cut taxes on most workers and raised them on the rich, and projected a cumulative budget deficit over the next ten years of $7 trillion. Immediately, critics cried that the deficit would be a lot larger but for an over-optimistic economic forecast. They were given ammunition on March 20th when the CBO released its own analysis, which put the cumulative deficit at $9.3 trillion, largely because of weaker projected economic growth. That figure would represent a near-doubling of the present federal debt.

Mr Orszag swiftly responded on his blog. First he noted that all budget forecasts are full of uncertainty, including the CBO’s—which, as he pointed out, he used to head before moving to his current job. Then he noted that a big reason for the CBO’s higher deficit numbers was a view of the economy’s long-term potential growth rate that is lower than most private-sector forecasters assume—too much pessimism, in other words. Irrelevant, Mr Elmendorf suggested on his own blog on March 23rd: the level of GDP matters more than its growth rate in determining the level of the deficit and on that front the CBO is more optimistic than the private sector.

One thing not in dispute is that, since the White House prepared its forecast, the outlook for this year has become a lot worse. (That said, some recent data, such as higher house sales in February, suggest that the crisis may be stabilising.) That is one reason why the CBO’s near-term numbers are grimmer. In the longer term, the CBO thinks potential growth will be lower because of slower labour-force growth and because a bigger government debt will crowd out private investment.

The CBO also expects low inflation. That results in nominal GDP falling 1.5% this year by its calculations, the largest such drop since 1938. Between 2016 and 2019 the CBO thinks nominal GDP will on average be almost 8%, or $2 trillion, a year less than the White House’s estimate, resulting in much less tax revenue (see chart). At the same time, the CBO has calculated that the cost of bailing out the financial system will be $200 billion more than it originally assumed.

The net result is not pretty. The White House thinks the deficit will fall to 3% of GDP in 2013, then roughly stay there; the CBO thinks it will only fall to 4%, and then climb back to almost 6% by 2019. The White House sees publicly held debt stabilising at 67% of GDP; the CBO sees it climbing steadily to an alarming 82%.

Whoever is right, the CBO’s numbers are a problem for Mr Obama. Republicans have seized on them to buttress their message that Mr Obama is spending the country into oblivion. No matter that their competing proposal of a spending freeze is economic heresy during a recession.

Effect of the Global Credit Crunch on Market

There have been far reaching effects on the global financial crunch on the market. The monetary policy has been very much lenient in the past resulting in a credit bubble. It is feared that the burst of this bubble would lead to a reiteration of the Great Depression of the 1930s at the global level.

The Bank for International Settlements , the esteemed financial institution of the world has cited the following reasons behind this global financial crunch:
1. Issue of new varieties of credit instruments at a mass scale.
2. Increasing household debts
3. Increase in the risk loving attitude depicted in the investors
4. Asymmetries in the currency system of the world

The Bank for International Settlements has also explained the role of China in contributing in the global financial crunch. According to BIS the Chinese economy is characterised by the following aspects: 1. Asset boom
2. Huge investments in the heavy industries sector.
More than 40% of the industries in China are loss making units and due to this the banking sector has accumulating Non Performing Assets .

Most countries are in favour of the building asset bubble since according to them they can be “cleaned up” in the future. The failure of this approach is evident from the Great Depression that followed in US in the 1930s and the situation faced by Japan in 1991. The debt and the huge investments that are accumulated during the boom years would have negative effects on the economy when the recession sets in.






A solution to the problem of global credit crunch is a cut in the rate of interest but this would only lead to wealth transfer from the creditor to the borrower. This could lead to a more vulnerable situation in the future.

Affiliate Marketing - Earn an Income Online

Affiliate Marketing - one of the most talked about topics on the internet today. More and more people are turning to the world of online marketing to supplement their income due to downsizing by several large companies. The internet has a lot to offer and many resources available to teach what is offered.

There are those that think making money this way is tough, while others say it is simple. What do I say? There is money to be made in almost any business if you are willing to put forth the time and effort required to do so. The object is to find the system that can simplify your work and profit more from your efforts. The end goal would be to use leverage, and the more leverage you use the better.

In case you don't know what affiliate marketing is, it is where you, as the affiliate, market other people's products and/or services for a commission. One of the major reasons that people choose this route is because there is no need to create your own product, own the product, or even handle the product. The only thing you do is advertise.

Isn't advertising expensive, you might ask. It definitely can be but only if you choose to pay for it. There are some methods in affiliate marketing that cost you nothing - from start up to collecting your commission. The marketing techniques that are available to use in your chosen field of Internet Marketing will help you increase your exposure and enhance your bottom line.

How much money can a person in affiliate marketing hope to realize? It is very possible to make a lot of money, all depending on the amount of time and effort you are willing to commit. The level of commissions paid by affiliate programs all differ, with some paying as much as 75% and others only 10%. You join the program, promote the product and you get paid.

One of the best selling points to becoming an affiliate is that you do not have to deal with anyone. All the problems (if any), the customer service and possible refunds are dealt with by the owners of the products. You are only required to do the advertising, and not the direct selling.

The direct selling is done by the owner of the product. As an affiliate marketer you stimulate interest in the product and lead the buyer to the sales page. This is where the idea of leverage is utilized and the power it provides. What is leverage? Leverage is the power to get things done, literally any method or system, process or tool that helps you to increase your efforts.

It is my belief that the people who assume affiliate marketing is hard; believe this because either they haven't yet tried it or they lack the proper understanding of how it works. The system works once you know how to do it, and if you use the benefits of leverage, the easier it becomes.

Affiliate Marketing is one of the easiest and quickest methods to begin to earn a substantial income online. Think about it - not only will you bring in an automatic income it is also a fantastic resource for a residual income as well. And this is one of the facts as to why so many people are attracted to this business in the first place.

Easy Freelance Income

To most people freelancing seems like a lost cause... They think that most freelancing will only make them pennies since they don't have any real skills like programming or design work.

This couldn't be further from the truth; there is a lot of profit to be made in the freelance arena if you know how to play the game... It's not about finding work, it's about finding the right buyers.

The right buyers know what quality work is worth and they're not out to scam anyone. Most people looking for outsourced work are probably in your same income bracket so they're just as tight on money as you are... That's why you'll mostly find people who want content and other things written or done for them at modern dave slave wages.

The fact of the matter is that you can easily get paid upwards of $10-$12 plus for each 300 word article you write if you know how to find the right buyers and position yourself as a freelancing expert. Don't settle for the scraps when you can have the real work that everyone else is afraid to look for or are just too lazy to seek out.

Working with bigger players means you get bigger paychecks, it's as simple as that. People with more money always go for the more expensive products or services because they know or have the mindset that more expensive means better quality.

Once you find these types of buyers just provide the quality they're looking for and you can make 3 times what the average freelancer makes on a normal project.

How to Make Money Online Legitimately

Make Money Online The Real Way

How nice would it be if you could start earning a few extra thousands dollars each and every month by working from the comfort of your own home? What could you do with all of that extra money? How would your life change?

As unlikely as the situation may seem, these are things that you seriously need to consider right now because I am going to tell you exactly what you need to know in order to start making money online legitimately. Keep on reading to find out how...

Making Money On The Internet Can Be Easy...

Do you want to know a little secret about earning money online? It actually isn't all that difficult. Seriously, making money on the internet really isn't hard at all. And that isn't an exaggeration. The hard part of earning money on the internet is finding a system that works and a system that is legitimate. This is where I can help out.

In order to make money through the internet legitimately you will need to understand a basic step by step process to follow. The first step in this process is to find an interest that you have. It really doesn't matter what the interest is as long as you are genuinely interested in it and you will be for a long time to come. That is the most important part of earning cash online. You need to be interested in order to do so.

After picking an interest you will need to capitalize on the interest by tapping into a related market. You see, as long as you are interested in something then there are going to be others just like you who are also interested in the same thing. And because of this it is very easy to earn cash online just by being interested in something.

Find A Legitimate Guide For Earning Cash On The Internet

Once you have found an interest and have found a related market you will need to start capitalizing on these two things. While this isn't all too difficult, you will need a solid system in place to follow. Now, you could spend dozens of hours researching the process behind making money online through capitalizing on an interest or you could use a plan of action that is already tried and proven. This will allow you to save a lot of time and a lot of money in the long run.

Do you want to know a little secret when it comes to making money online and working from home? If you truly want to earn money then you need to have access to an honest "make money online" guide. Guess what? I've gone through all of the guides for making money online and I've analyzed each and everyone to see if they really offer value. Do you want to know what I found? There was only one guide that offered a genuine way to make money online with no experience at all.

Facts About Realistic Income Online

What is the definition of realistic income? That will be greatly dependent on you. How much do you need to make every month versus how much you would like to earn. Realistic income online can vary a lot from person to person. There are a lot of points and possibilities to be weighed when you get ready to decide what kind of money making avenue you will pursue on the Internet.

It isn't true that you can make money completely on autopilot. I don't care what program or system you try, if no effort is put into it then nothing will come from it. There is no such thing as money appearing like magic out of thin air.

It is true that some people earn incredible sums of money online every year. There is a little more to the story than they just plugged in and instantly had mega buck pouring in every day or week. None of them are new to earning a living online, with the exception of the rare overnight New Big Thing phenomena. Most of them have had winners and losers when it comes to online money making ventures. Like any other way of making money, sometimes you hit the nail on the head. Sometimes you smash your thumb instead.

Earning a realistic income online will be something that starts out slow. Many people who do earn a good income online have more than one website or service business operating at once. This is the best way to get good cash flow going.

Forex Trading in a Crisis Ridden Economy How to Profit From It

* Forex is an acronym for foreign exchange market where currencies of different countries are traded on electronic platform,that is to say that the market has no fixed location where you can go and buy these currencies. Internet has made it so simple that you can trade anywhere in the world and it is 24hours trade that runs from Monday through Friday every week of the year.

* The volume of trade that goes on in forex trade is so huge that everyone should think of how to get a piece of the cake,for example the amount of money that is exchanged on daily basis in forex trade is estimated to be more than $1.9 Billion on daily basis. The question is who are the people taking or making these huge profits from the foriegn exchange trading online? They are individuals like you and i,basically it is between forex trader and the forex brokers that are linked with multi-national corporations including big Banks across the globe. What this means is that there is nowhere an individual traders can start their own platform without going through authorized forex broker.

* All over the globe people are curious to know what the market is all about, the problem been that forex trading is a new dimension in foreign exchange trading. What people know is the traditional mode of buying and selling of currencies offline which had been with us for ages. Come to think of it if not for the technological invention called internet it would not have been easy for the market to be flexible at all.

* How can one benefit from this global market that over 8 major currencies are traded? How does the market benefit all in this time of economic melt-down? To answer these questions we should know that the market do fluctuates, that is to say that the market do go up and down. This can cause one to lose his or her money in a volatile market like forex trading if untrained. To benefit from the market you need adequate knowledge of the market, that is to say you need expert in the industry to train you and you need constant training and long duration to demo trade and get some confidence before you can venture into staking your money to start Life trade. As you get the training or you use Robot program which is a programed trading software. All these can benefit you by making you serious cash on daily basis.

* Forex trading will enable one to overcome economic melt-down that is affecting all countries of the world if you can shift you attention to it and see how thousands of traders are smiling to the Bank almost on daily basis. Seasoned Traders can boast of 40- 300% profit on monthly basis. Do you know that you can gain as the movements of the trade goes up or down? You would agree with me that in this market the only thing that will help someone is hard work and dedication,

* So come join the band wagon of forex traders and see how you too can be a winner in a situation where majority are crying of misfortunes. In all fairness if you are not trading forex it is as if you are leaving hips of cash on the floor while others are picking it instead. This the time to awake and take action is now!.

Are You Facing an Energy Crisis?

In order to perform all the functions of life, our physical bodies use a variety of energy forms. The most common energy used is derived from the food that we eat each day. The variety of carbohydrates, proteins, and fats that make up our daily diet are processed by our digestive system and converted into energy that can be used at the cellular level. The metabolic energy contained in foods varies from food type to food type. Some foods contain components necessary for repairing the cells. Some foods contain ingredients that are needed for regenerating replacement cells for those that are dying. But the majority of our food is converted to chemical energy that is used by our body to perform its day-to-day activities.

The second form of energy that is used by our physical bodies is electrical energy. Action within the human body is caused by a transfer of information from one location to another. The line of transmission that is used is primarily our nervous system. The transmission itself is achieved by firing of electrical impulses from nerve to nerve. Although there are thousands of electrical impulses being fired at any given point in the day, there is a method of prioritization by the brain in order that it may address the most critical body needs prior to those that are less urgent. The more rapidly in nerve fires its signal, the higher the intensity that is perceived by the brain. If the firing rate of a nerve is slower, the brain interprets that signal as less serious. Research has shown that cells are similar to integrated circuits that are found in computers and other electronic devices. There is now a field of medical research known as bioelectronics that is studying the cellular information transmission systems.

Light is the third form of energy that our body uses to communicate information. Each of the cells in our body puts out a small pulsation of light. Although it is extremely weak, these pulses of light are measurable in the ultraviolet range. Researchers have found that the small bursts of light emitted by living cells increases when a poison has been introduced to the cell culture. An experiment performed by Russian scientists almost fifty years ago demonstrated how the ultraviolet light pulsations transmit information across a distance. Cell cultures were placed in separate quartz Petri dishes placed side by side and a toxic substance was added to one of the Petri dishes. Both cultures died. When an identical set of cultures were placed in glass Petri dishes and the experiment was repeated, all in the culture that contained the poisonous substance died. Because ultraviolet light passes through quartz but not glass, these results suggested the transfer of information between the two cell cultures that resulted in cellular death for both was transmitted by ultraviolet light emitted from the cells.

To get the best performance possible from your body, it is important to take care of all the energy needs. Proper nutrition, exercise, and exposure to the sun are necessary to recharge your batteries that are drained by the daily stresses of life. If your energy level is down and you feel like your batteries are drained, try recharging your diet, your workout plan, and your time in the sun.

Refinancing Your Home Mortgage

In the past 30 years, interest rates have ebbed and flowed significantly in a financial tide of home mortgage offerings. Near the beginning of the 1980s, for example, rates for traditional 30 year, fixed rate mortgages were around 18 percent. Right now, though, we're seeing rates for the same type of loan around 5 percent - and on some days recently, in the 4 percent range.

Many home owners who bought when rates were sky-high are now considering refinancing in order to reap the benefit of today's lower rates. If you're one of these people, know that there are some costs involved in refinancing your home, such as an appraisal, title insurance, and a loan origination fee, just to name a few. To figure out whether these costs will balance out with the potential money you can save by refinancing, you can use the general rule of thumb called the 2 percent rule. In plain English, this rule suggests that the percentage difference between the current rate you have on your loan and the new rate being offered should be at least 2 points. So, if you were one of those borrowers in the 1980s who got a rate in the teens (and you can get a rate now for around 5 percent), it would make pretty good sense to refinance.

I've included below 3 benefits for refinancing with a lower rate:

1) Lowering monthly payments - By lowering the rate of your loan, you can see a significant difference in your monthly mortgage payment. And, every little bit adds up. Some borrowers who refinance can save thousands of dollars over the course of their loan period. How much you save, though, completely depends on your numbers. So, be sure to talk with a mortgage specialist who can do the number crunching for you to see how much you can potentially save by refinancing.

2) Changing the type of loan you have - Some borrowers choose to refinance even if they won't save any money by doing so. Think of the many borrowers who got an adjustable rate mortgage. We're seeing a lot of these borrowers refinancing simply to switch to the fixed rate mortgages. Also, some borrowers who have a balloon worked into their mortgage choose to refinance when it's gets closer to the time to make that bulk payment.

3) Getting money from your equity - If you've been in your home for ten or more years, you probably have a good bit of equity due to the overall appreciation of your home (even with the current dip in home values) and to the fact that you've been making those monthly payments for some time. For this reason, some borrowers opt to pull money out when they refinance their mortgage in order to help with retirement or with their children's costs for college.

If you're considering refinancing your home, be sure to talk with a home loan professional - someone experienced in refinancing who can sit down with you and go over your numbers and the options available to you. And, know that each situation is different. Your lender should be able to go over short-term and long-term benefits (or consequences) that are specific to you and geared towards your financial future.

Economic Depression Definition

A depression can affect a community, a region, a nation, or the world. Economic depressions are often defined by several characteristics:

1) Massive unemployment: During a great depression, many businesses suffer a large loss of sales for their product or service. For this reason, many businesses often reduce their labour force by large amounts. Many businesses can go bankrupt during a depression, eliminating many jobs that were provided with the business.

2) Social degradation: Economic depression is often very bad for a functioning society. With large unemployment rates, many people can not get jobs. Thus, food lines, crime, prostitution, mass movements of people to various places , and other forms of social degradation are often common. Many people are forced to rely upon the government for help in these distressing times.

3)Degradation in social services: Many people use government services of one form or another during normal economic patterns. Often, during prosperous times, individuals who are not currently employed can rely upon government assistance programmes until they can find another job.

However, during economic depressions, large portions of society may become unemployed. As a result, social services provided by the government can be put under sever pressure. Also, as many more people depend upon social services for their needs, a government's ability to provide those services becomes much more difficult. This is due to a drop in tax revenues provided by now existing businesses, as well as the employees of the government. As one can see, a sever economic depression is not good for anybody.

Where Will Mortgage Rates Head in 2009?

One of the most asked questions for every home owner in the year of 2009 will be, "where are mortgage rates headed?" Obviously, no one can be 100% confident in making this prediction, but if we look at the recent events in the United States economy, we can at least make an educated guess.

Many lenders are advertising that rates under 5% are currently available. These rates are truly only available to applicants who have 20% to put down on a mortgage and a FICO score of over 700. Many Americans do not have these financial standards due to the struggling economy. The average 30 year fixed rate mortgage is currently at 5.26%. Once again, to gain access to this rate, one must have a solid credit rating and some financial backing. With that known, where are rates headed?

If rates are currently at 5.26% and have declined steadily over the last eight weeks, why would anything change? Shouldn't they continue to head lower? That would be the logical guess, but sometimes markets do not work in ways that seem logical.

The amount of mortgage applications has increased by 48% over the last few weeks, so it has been quite difficult on the mortgage lenders. Some lenders have even increased rates so they could complete all the applications that are flooding in. Yes, the overall trend is down for mortgage rates, but it would not be surprising at all if there was a quick bounce just to get most lenders caught up with their paperwork.

Even if there is a bounce, it is still not a bad idea to keep an eye on the overall trend which seems to be downward sloping. Look for a quick bounce in rates and then a steady decline as the year wears on.

World Economy 2009

I have been reading, World Economic Situation and Prospects 2009. It is a joint product of the Department of Economic and Social Affairs, the United Nations Conference on Trade and Development and the five United Nations regional commissions. It is an assessment of the global economy for 2009. I consider this report in the context of the evolution of human civilization that I have been studying for many years.

The report seems to be saying that the financial infrastructure set up at the Bretton Woods conference in 1944, including the IMF and the World Bank, is essentially bankrupt beyond repair, and that we are working on developing a new alternative international banking system. The United Nations is developing a multi-polar economy, that includes all nations and several currencies, instead of the US$ based economy set up at the end of WWII.

While the whole world economy is grinding to a halt, China and OPEC seem to be the nations with the most ... savings to invest in economic stimulus spending. The USA is spending trillions of borrowed dollars to stimulate its economy. The EU is also spending borrowed money. India seems to be working in the black, but doesn't have the mountains of cash like China and OPEC. The UN is working on developing a coordinated response to the global crisis.

I can remember fuel prices spiking a couple of years ago. Oil was $140/bbl and fuel was more than $4/gal. Just as suddenly as it shot up, the prices collapsed. Now, a few months later the whole world economy is coming unglued and spiraling into the worst economy since the 1930s. The World Economic Situation and Prospects 2009 says the corruption in the US banking system is the original impulse that has caused the economy to unravel. The real estate first, and then the entire credit industry and now the whole world economy is crumbling.

I suspect that the corruption in the US economy was definitely a factor contributing to this recession, however, there are other factors that are not being mentioned, at least that I am aware of. Mainly, the effect of transferring trillions of dollars from the advanced industrial nations to oil exporting nations. Its almost like another battle in the war on terror. These civilizations are clashing because they are coming together. We are all interdependent, individually, nationally and globally.

The report mentions that the Millennium Development Goals are far less likely to be accomplished because of the slowing economy. Another aspect of the story is the food crisis. The increasing fuel prices drove the price of food higher which has had a considerably harmful effect on the poorest people on earth.

The UN is responding aggressively and we are developing a new global financial infrastructure. It is based in the UN rather than the G-8 or even the G-20. We want all nations to participate in our economic consultations. We are also increasingly universal in scale, rather than national. This way the nations can work in concert with one another, instead of a haphazard response at best, a competitive response at worse.

We can not afford to allow this childish fighting over the earth's resources to continue. There are plenty of resources for everyone to live comfortably. These periodic shortages and economic upheavals that we have been experiencing during my lifetime are totally artificial. We can no longer allow a tiny minority of earth's inhabitants to fight over the material prosperity of human civilization.

We are rapidly developing a global financial and economic infrastructure that will be cooperative, transparent and function in harmony with earth's biosphere. We are establishing a more perfect union, a universal federation of nations. We are all responsible for this. Human civilization is whatever we make it. Every single human being alive on earth is responsible for making the world a better place, for creating a safe, clean and decent society.

Concerns About Countrywide Home Loan Modification

Countrywide Bank, which was bought by Bank of America in July of 2008, is a major mortgage lender. Many homeowners with mortgages from Countrywide heard about its new plan to help more homeowners than ever refinance and modify their loans when they are having trouble paying. But they may have more questions about the Countrywide home loan modification process, what it entails, and who qualifies.

First off, Countrywide has gotten a bit of a bad reputation in the mortgage lending business. It was sued in 2008 by State Attorney Generals for predatory lending practices, and doing a simple Internet search for "Countrywide loans" will probably result in lots of angry message boards from dissatisfied customers. Among the top complaint is that Countrywide customer service reps never tell customers the same thing twice, or that mis-communications or clerical errors have cost homeowners a lot of time and money.

As a result of the lawsuit, Countrywide announced a statement that they had a new plan in place to help troubled homeowners in a streamlined fashion. For loan modification, Countrywide's goal is to lower the monthly payment to within 34% of the gross monthly income so that people can afford to make their monthly mortgage payments. The modified loans will feature step-rate interest payment adjustments as time goes on. To be eligible for a Countrywide home loan modification, you must be a current Countrywide borrower who occupies the home as a primary residence.

Countrywide plans to modify loans in several ways. For FHA loans, HOPE for Homeowners is a special refinancing program that allows people with low home equity to refinance through a special equity-sharing program. If a homeowner refinances through HOPE and then sells their home later on, they will follow a sliding scale for how much of the home's equity they will give to the FHA at that time. Other options for loan modification include interest rate reductions, plus principal reductions to restore lost equity.

Even though the past reputation of the company is spotty, if you've already got a mortgage with Countrywide then you need to move forward. Be proactive and seek a loan modification if your monthly payments are too high a percentage of your monthly income. Bank of America is trying hard to change the image and procedures of Countrywide, and since the lawsuit new plans for loan modification have been implemented. Countrywide automatically reviews many mortgages and will send letters to borrowers who are 60 days delinquent or may become delinquent to inform them of their loan modification policies.

An Innovative Solution For the Current Economic Crisis

The nature of the current economic crisis is such that it cannot be resolved with the standard array of tools at the disposal of the President. What's required is a sustainable, renewable solution, one that transcends the immediate financial crisis and actively - proactively - deals with the new paradigm of economics we are now dealing with.

The Prosperity Mandate offers a brilliant proposal that is both inspiring and doable. The centerpiece of this financial paradigm is to convert net worth (not Government funding) into liquidity, which then funds the economy. What this means is that is that over a trillion dollars can be infused into the banking system as a sophisticated investment without a single dollar of direct government funding. Thus, the current economic crisis is resolved with a sustainable recovery plan and renewable funding mechanism - not through government bailout - with massive job creating capital investment in ideas whose time has come.

In essence, net worth is transformed into liquidity in the following manner: Tax credits are issued to investors for cash deposited into CDs, which are then pledged as collateral on Fund America programs. These CDs earn tax-free interest. The U.S. government will guarantee the CD against bank default on the principal. The CD guarantees generate loans invested in the new economy, creating jobs, developing infrastructure, fostering urban renewal, developing Green energy manufacturing, and funding ecological technologies.

Each loan has a PayBack scenario to pay off and release the collateral CDs. The government does not foot the bill, but rather, provides the incentives for investors to do so. Every time a collateral pledge is released through cash pay back or permanent financing, the CDs can be renewed, and the pattern begins again. This recovery plan requires oversight, risk management, and transparent real time accounting, as well as banking, reporting, regulation, and review.

Imagine, as an example that the parents of newlyweds want to empower their children to lead self-reliant lives. After figuring out how much of a mortgage the newlyweds can afford to pay based on their incomes, the two families go to the bank, deposit CDs, and pledge them as collateral to secure a loan for lot acquisition and home construction. As time passes, a new home is built and a new mortgage is funded, which pays off the loans and releases the security pledges. The families did not give anything away - they merely facilitated a wealth-building process by converting their net worth into liquidity for the sake of economic growth.

The Fund America Trillion Dollar stimulus plan is entirely doable, friendly to both big business and the newly unemployed, ecologically sustainable, and ready to be implemented for a full economic recovery that ushers in a new paradigm of cultural interdependence. Citizens be encouraged! Reach out to your Congressperson and Senator to ask for support for the The Prosperity Mandate Fund America Tax Initiative. Create a Job -- Get a Tax Break! Invest in America - Pay less tax! We are in a period of great transformation, and now is the time to implement a truly sustainable economic and renewable solution for the current economic crisis.

N. Katz is the founder and visionary of The Prosperity Mandate organization. Previous highlights of his professional career include being an entrepreneur who has started, funded, and advised companies from dinner napkin to Fortune 100 companies. He has taken start ups public through Initial Public Offering, served in the Executive suite of two public companies and on the Board of Directors of several companies. Mr. Katz completed the Executive Program in Management at the John E. Anderson Graduate School of Management at the University of California Los Angeles

Mortgage Crisis - Giving More Woes to the Economy

The economic scenario seems to be getting worse as the financial sector continuously reporting huge losses from exposure to the mortgage market. Even the residential sector, the commercial real estate sector, and sectors like credit cards, auto loans are moving to a negative territory and are quite at risk.

However, default mortgage rates this year have already shaken the financial sector. And now it is expected that millions of adjustable rate mortgages will reset, giving higher interest rates (according to the new loan agreement), which is just impossible for the homeowners to pay. But the homeowners, who are having $600 billion of subprime adjustable rate mortgage loans that is the ARM, are about to reset at higher amounts during the next eight months. Its not all the mortgages that are in trouble but homeowners who default or fall behind on the payments are a problem.

Now the situation is such that this mortgage crisis is forcing people to get out of their homes, besides hampering the economy as a whole. It is expected that the housing slump may get worse by more empty homes in the market, causing prices to plunge by up to 40% in real estate spots, such as California, Florida, and Nevada.

According to a recent report by the Goldman Sachs, the estimated industry wide losses from declines in the market value of subprime mortgage related collateralized debt obligation, to be almost $150 billion. Moreover, the third quarter write-off settled down at $18 billion from the financial firms but some firms indicated that the write-off in the fourth quarter would come to $22 billion. However, the losses could even hit $300 billion, as estimated by the Organization for Economic Cooperation and Development.

This worse situation of the housing sector is resulting into bigger problems, that is the unemployment and the higher consumer losses. It is estimated that almost 100,000 financial services jobs related to the credit and lending have already been lost, from local bank loan officers to traders dealing in mortgage backed securities. And moreover, this kind of countless job losses would curtail consumer spending that makes up two-thirds of the economy. However, thousands of workers of the housing industry could loss their job and it is expected that this would affect the car dealers, retailers and other dependent on the consumer paychecks badly.

Other indication shows that borrowers who took out loans in the first six months of this year are already falling behind on their payments as compared to the borrowers who took out loans last year. And this is making it harder for would be buyers to get new mortgages. This is in fact, is a frightening indication for the home builders with projects going begging on the market, and also for the homeowners desperate to unload property to avoid default on their loans.

Besides these sectors, there is one more vital sector that is foreclosure. The number of homes in foreclosure is expected to move high after more than doubling during the third quarter as compared to year earlier, to 446,726 homes nationwide. This is one foreclosure filing for every 196 households in the nation, a 34% jump from three months earlier.

America's Growing Energy Crisis

I read an online article this morning about a 'war games' simulation conducted in America showing how fuel prices could soar as a result of certain events, such as terrorist attacks in Saudi Arabia and Alaska, political instability in Nigeria and other scenarios. In short, fuel supplies would be choked, the cost of oil would soar to $120 per barrel, gas would rise to $5.30 per gallon and the U.S. would slide into an economic recession.

April, 2008: Fuel is trading at a record high of approximately $118 per barrel and the national average price for a gallon of gas is $3.56.

August, 2005: Let's put this in perspective, current fuel prices in Iceland are approximately 110 kronur per liter. At today's rate of exchange of 64 krona per dollar, the cost of a gallon of gasoline in Iceland is $6.43. Talk about "crisis level" prices! The current U.S. national average for gasoline is $2.21 per gallon that would be 37.8 kronur per liter. If we saw this price at our local gas station, we would be shocked by the amazing deal being offered. We would immediately fill our gas tank to the top and then alert all of our friends. The "crisis level" price of $5.30/gallon as stated in this article,
correlates to approximately 91 kronur per liter. This would still be considered a deal.

August, 2005: It is time that Americans face the reality that their energy policies, attitudes and behaviors need to change. Most Americans believe that driving is a birthright and if they want a 500 horsepower, 10-cylinder, viper-powered sport truck that gets six miles per gallon then, so be it. Wait till these people have to spend $250-300 to fill their 40-gallon (152-litre) tank. The average European is already dealing with what the average American would call "crisis level" gas prices. They do it by purchasing automobiles with small displacement gasoline and diesel engines. Most of the trucks (SUVs) here are diesels, very few are in America. In fact, in many cases, in America diesels aren't even offered.

April, 2008: The cost to fill a 40 gallon tank would be approximately, and conservatively $142.40 at $3.56 per gallon. Diesel fuel is quite a bit more expensive and many independent truckers are operating at a loss, some have even started staging protests by blocking roads. And, for the first time since 1980, Americans are driving less. Sales of hybrid cars are growing strong but most Americans have a strong bias towards large, inefficient automobiles. Meanwhile, the top three U.S. auto manufacturers are in big trouble as sales of SUVs has dropped significantly and they have not invested enough in the development of fuel-efficient cars that people would actually like to buy.

August, 2005: I am always converting prices in Iceland to U.S. dollars. This is something I should stop doing because I can't help but be consistently amazed at how expensive things are here. But living in Iceland has taught me to adapt. Yes, fuel is expensive here - so is everything. So, drive a smaller car. I am not saying that Icelanders are somehow inherently more environmentally enlightened than Americans. If you ask me, Icelanders are a lot like Americans: they love their cars and they are major consumers. It's just that the tax climate and general high costs of life in this country are very prohibitive. And, Icelanders remember more vividly what it is like to go without.

August, 2005: The current consensus is that fuel prices will not stay at this level and will most likely drop again. Many experts claim that this is an issue of refinery capacity, not a lack of oil. Nevertheless, it seems obvious that this is a sneak preview of what's to come for the world in general and the United States specifically. I don't know about you, but this sneak preview frightens me. I don't see much movement in Americans' willingness to embrace change in the energy arena. We can only hope that they wake up to this looming global reality and that the next U.S. president will be a strong leader, willing to promulgate a more sensible and logical energy policy.

April, 2008: I am not so sure that the US fuel prices are likely to come down significantly anymore. I sometimes fear for the future and wonder what kind of world my children will inherit as oil becomes scarcer and scarcer; we have already fought two wars in the gulf. Could more wars be in our future over energy? If you think we are feeling the pinch now just wait till China and India demand a larger share of the world's oil output.

Don't get me wrong, I love cars. I love driving. Part of me is sad and disappointed that I will never get to own the sports car of my dreams. Or, maybe that sports car will be an electric one like the Tesla! But times are changing and if we don't start moving aggressively towards much greater fuel efficiency standards and other renewable energy sources for electricity, like geothermal, wind and solar, we could have a very bleak future ahead of us indeed.

I recently read that Iceland is one of the few countries that have a solid plan to go 100% non-fossil fuel by 2050. They are already investing in hydrogen powered cars and buses and have one of the first hydrogen fuel stations right in the capital city of Reykjavik. They already get almost all of their electricity needs met by geothermal and hydroelectric power. Wouldn't it be ironic if this tiny island nation ends up leading the way towards clean and renewable energy economies in the 21st century? Weirder things have happened.

Sorce : EzineArticles

Don't Cry Over the Failing Economy

I would like to get right to the point. Starting your own online business is not free. Many opportunities will cost you anywhere from say $20 to $100 just to get your foot in the door. A lot of places will give you a free website if you join their club or become an affiliate. An affiliate just gets people to the website of the host site where the host handles the product to be sold. The host then pays the affiliate for the person they refer.

Affiliate marketing is a way to get started and requires the least amount of capitol. One way to get going fast and to make money more quickly if you are a beginner is to join a club. These clubs will help you with tips on advertising, logos, symbols, and tools help you get started. Most clubs also offer what they call a support department which is a great tool to use when getting started. Most clubs I've looked at cost about $97 per month to be a member.

An excellent club will have a successful leader who can be your mentor. This person should have a good background in Internet Marketing and should be willing to work with you. The club should grant members access training, which is so important when anyone is just getting going in a business. Videos of how to do the business are a great way for you, as the new kid on the block, to learn and also a great way for you to teach other how to duplicate what you have learned. If you are really interested in this kind of business, a club that offers residual income is the best kind to get involved in.

Whatever you do, just remember nothing is free but if you are willing to do the work involved and follow the instructions, you can build a great business. You can join millions of people who are making terrific money on the Internet, working from home, and enjoying not punching that old time clock!

College Students and the Economy

Over the past few years many downfalls has beset college students slowing down the process and even causing a lot of drop outs. One of the major things that our young people have had to face is the problems in the Middle East. Many of our young people were ask and they elected to go abroad and help during the crisis that we have been having in countries like Iraq and Afghanistan. Many of these young people have lost their lives while others have been faced with total disabilities that prevented them from going to college when they returned home.

The cost of tuition to attend college has been a major deterrent that stopped many young people from going to college. Unfortunately, the job market has been very bad which prevents our younger people from going to college. Many lay-offs and downsizing in major corporations of executives has made many of our young people wonder if they want to go to college to become accountants, architects, account executives etc. Is it any wonder with all the major problems that the ones who now hold the position that younger people find they do no longer want to go in the business world?

Many other positions are opening which makes it better for those who want to attend college. The field of medicines is one that has many openings while some of the fields in business are phasing out which makes many changes in the courses that colleges are now offering. President Obama's stimulus package has promised that college students will not be forgotten with his intentions to help the student as well as the colleges to get back on their feet it is a matter of time before we can really tell what will happen.

College students feel the crunch of our failing economy with the cost of attending school without as much help as they have had in the past. Now that the promise of more grants from the government many students are taking a new interest in some of those careers that are offered by the local community colleges as well as Universities. New students are very interested in finding a career that will last and with the help that is offered they feel that it is possible. Many college students who have felt the crunch in the past now feel that they are on the road to recovery with the aid of the government.

Product Creation in a Down Economy

Creating and introducing new products in the present economy may be a significant challenge. Finding the perfect product the consumer may be looking for may seem like trying to find a needle in the haystack. Can it be done? Yes.

A few questions to consider.

Is it a necessity? Many items purchased in an economic downturn will be items that are considered a need. Wants may still be considered, but for the most part those will be items already familiar to the consumer.

Where does your product rank in quality? You will need to balance production costs against the overall value of the item. If it takes a considerable amount of money to make, but provides exceptional value in long-term durability you might still have a potential winner on your hands. That being said you should always try to keep your prices reasonable. If you can't do that you will need to explain to the customer why your product is worth the price.

Is your item practical? Can your customers envision themselves using the product you are selling? If it fits their lifestyle and provides a regularly needed function then the item may be purchased.

Can you reward your customers? This could come in a content rich members-only portion of your website or even a free ebook. It could come via a coupon code for a price reduction on future purchases. It might even reward your consumer base for referring friends to your site. Get creative and give customers a reason to come back and bring their friends.

Can you provide a guarantee? Consumers may feel more comfortable about accessing an offer based on a 'risk-free' offer. If you are confident enough in your product you might consider the possibility of providing a money-back guarantee if they aren't satisfied in the first 30 days. This may be a calculated risk. The hope is that the product really is a winner and that by simply trying the product the consumer will be assured they have made a great choice. If they still determine it is not to their liking then they have no negative feelings toward you because they could return the product for a refund.

Have you got your testimonial ducks in a row? You will need to deliver customer testimonials to enhance the sense of corporate trust in your brand or product. Consumers will want to know if others have enjoyed the product or found it to be a time saving and practical item to own. This can be accomplished through the testimonials of paying customers or a test group that is asked to try the product and then give their opinion. This second option is something that typically happens before the product is available for sale.

Right now in American history it might not make much sense to try to launch multiple frivolous products. There may indeed be a market for it among those who may wish to escape the world as they see it, but the concept of quality remains the most viable scenario for product creation. Market that new product accordingly and enjoy the fruit of your labor.

The Economy and Our Quality of Life

The current financial and economic crisis is real. It will most likely be long and protracted. For millions, navigating this crisis will be a life-changing experience. As such, two important questions need answers: (1) "How will this change my life?" and (2) "How will I choose to face this journey?"

"My days of whining and complaining about others have come to an end. Nothing is easier than fault finding." - Og Mandino

Internal beliefs

During this crisis, much of what we think, believe and feel about how we live our lives, what we need to do and have to be "happy" and "successful", and what kind of work defines "me", etc., may no longer provide the support for a healthy sense of well-being, success or financial stability. For example, how we feel about our work, our career, the house we live in, the material needs we have, etc. are beliefs and assumptions that we may need to change.

Many believe their notions of how the world is, how it should be and how they are in it are all correct and never need changing. But, we see and know everything is changing - always. The current crisis is a huge tug on our sleeve, saying, "If we do not change our thoughts about ourselves and about life, we may not be able to sustain our continuous personal growth and development." In fact, our old thoughts and paradigms may be inhibiting our natural growth processes, and block our soul from manifesting its intelligence in these rough times. It is easy to recognize people who think and feel the same way as they have always thought and felt in how they live their life at work, at home and in relationship. These times call for taking a serious step back and reconsidering.

In good times, and bad, we need to continuously challenge ourselves to learn, to see life from differing perspectives, to enlarge our vision, and to rediscover or re-create ourselves. In these times, our soul is seeking to arise to meet changing needs. Now, more than ever, we need to allow ourselves to be open and conscious of how our soul is operating in our lives. If we don't, and remain mired in our mental and emotional status quo, pain and suffering are the most likely results.

How I approach change

How one approaches change is a choice, pure and simple. One can approach impending change with an attitude of positivity, seeing this experience as a "blessing in disguise," an opportunity, or with a negative, resistant attitude - that this is "being done to me" - and fight their experience kicking and screaming. Whether we respond positively or react negatively and defensively is a function of how we view pain and suffering. When we approach life as a learning experience, we look to understand what the pain is trying to teach us - to find meaning in the challenge and upset.

These times present an opportunity to see what we need to see about ourselves. The desire to escape or deny our challenges rather than to meet them head on as a valuable learning opportunity, leads only to more pain and suffering.

These challenging times call for resiliency - the willingness and ability to be flexible, steadfast, optimistic and open to change, growth and learning. Those who are not willing or able to be resilient will most likely experience burnout, exhaustion, confusion, malaise, depression, resistance and cynicism. Most folks are not naturally resilient; resiliency has to be consciously learned and, more importantly, practiced.

Hard choices

In the throes of this economic crises, many will have to make hard choices, large and small - whether or not to renew their insurance policy, move into a smaller house or other space, sell one of their cars, send their child to a less-expensive college or perhaps no college at all, change jobs and career, move, give up their pet, have fewer lattes or dine out less each week, postpone vacations, buy fewer clothes, etc. How folks approach these choices will determine the degree of well-be-ing they experience. If they see life's challenges as opportunities to grow their souls, mature and learn about themselves, well-being will be a part of their reality. If they see themselves as "victims", chances are well-being will be largely overshadowed by anger, depression, dis-ease and disharmony.

Reactivity to fear

In these times, fear and anxiety are huge issues. Another important consideration is how folks are dealing with their emotions. Some are seeking professional support from therapists, clergy, coaches and trusting friends; others are acting out their emotions through drug, alcohol and food abuse, engaging in illicit affairs and infidelity, and gambling. Still others are in denial - hoping that the problem will go away if they don't acknowledge it, engaging in distractions and seeking a false sense of relief.

Self-awareness and self-responsibility

For those who are not averse to facing the crisis head-on, growing their emotional and spiritual maturity, and are willing to do some deep soul searching and self-refection, this crisis provides an opportunity for exploration - the type of exploration that can lead one to uncovering the "truth" of their lives while leading to extraordinary personal growth.

The strategy

There are a number of actions and attitudes that can support one to become resilient, to consciously move through these challenging times on an even keel.

First, being open to change is very empowering. Don't just look at your corner of the painting, make an effort to see the big picture and where you can fit in - in your career life, in your life at home, in your community. What needs upgrading and downsizing? Who needs to be in your career and social circle in a supportive way? Let go of the need to be in control - of everything. Consider the steps you need to take to move forward.

Second, explore what knowledge, skills and abilities will help you navigate these rough times. Create an action plan and pursue these steps one at a time, notice if you are resistant and why.

Third, explore why you are on the planet. This exploration will support you to create a conscious and healthy context within which you will create, or re-create, a new-improved "you" that can meet today's challenges and opportunities. Explore who you are, really, inside and outside of work and pursue those skills, interests and activities that will support your honest and realistic image, not a fake and phony "you."

Fourth, explore how your knowledge and skills may be transferable to both existing and new career areas and how you can support businesses to be more successful.

Fifth, spend time in self-reflection. Take time regularly to explore your attitudes, feelings and emotions. Explore what you're learning about yourself during this journey. What "do-ing" and "be-ing" patterns are supporting you and which are sabotaging your journey? Which are relieving stress and which contribute to upset? Which are deepening your relationships with loved ones and which are causing emotional, physical and psychological separation from others? Which reflect positive self-management efforts and effective time management practices? And, which don't?

Finally, explore any stories you are telling yourself that point to doom and gloom. Are these stories really, really true or are you using them to rationalize and justify denial, doing nothing, and maintaining your status- quo way of living your life in the face of mounting odds? Be honest. Are you refusing to take a risk and see what's possible "out there?" How do you need to prioritize your life?

What I need, not what I want

It is not action or effort that we must surrender; it is self-will, and this is terribly difficult. You must do your best constantly, yet never allow yourself to become involved in whether things work out the way you want.

The Universe often acts in strange ways - "strange" according to our idea of how things should be; but quite appropriately according to our True Nature. Honest self-reflection can bring us to the realization that life's challenges and struggles may not give us what we want (our ego-mind), but will often give us what we need (our soul's growth) - what we need in order to become more caring, compassionate, humble, ego-less, and emotionally and spiritually mature human beings. In the process of self-discovery, we learn to become wiser, stronger, more courageous and resilient, and perhaps for the first time in our lives understand the true meaning of "less is more" - that, in fact, this crisis can be a blessing in disguise.

So, some questions for self-reflection are :

How are you faring in these challenging times? How are your moods, your emotions?
What are your greatest fears right now and how are your dealing with these?
What decisions are you avoiding and resisting? Why? Are you in denial?
What thought and behavior patterns are supporting you or limiting/sabotaging you as you navigate these rough waters?
What creative efforts are you crafting to move forward?
How are you supporting your family to "get through this together"? Or, are you separating emotionally from your family?
What is your heart telling you that your brain contradicts?
Are you allowing a victim mentality to keep you from acting?
What support do you need right now, and from whom, to help you cope and move forward? What steps are you taking to get this support?
What defense mechanisms are you using to resist change?

What Do We Do With Our Money Now?

Ludicrous isn't it? The get rich quick reality shows are still on television. Sort of like watching reruns of Seinfeld from the nineties when people cared about George Costanza's meditations at the diner. Everyone still wants to be a millionaire, but where would those new millionaires invest? Stick your money in the banks that are still dying...risky. Put it in the stock market that operates on air. Hmm...might lose a lot. How about real estate? Lot of good bargains, problem is those darn houses keep falling in value. And how about those shows about flipping houses and all the get rich quick gurus still hawking their wares on the upper cable channels? They might have some answers. How about all the fabulously rich and famous people still blabbing all over the airwaves? How about Oprah and Suze Orman and Dr. Phil and David Letterman and Jay Leno? They are still having a tremendous time, a fantastic time and making tons of money. They could certainly tell us what to do with our money.

There does still seem to be that group who are laughing while the middle class waits for the next debt bomb. You might go to the movies to see what those people do with their money. Take a movie like Revolutionary Road where the couple chucks it all and decides to go to Europe. They can't stand the middle class grind and so they opt out. They sell their house and cash their savings and go. The problem is we can't sell our houses right now and those savings...well, we can't sell our houses anyway. You could Tivo Barack Obama's inauguration speech and look for clues, But even his speech recognized that for most of us the party was over. The high rhetoric had taken backseat to chastising us and the titans of finance for our orgy of spending. Yeah, he's right.

The problem is what do you do with all this old economy stuff...big cars and houses and high taxes? Chances are you have one of the three and the bills still have to be paid. I personally would love to pull the Kate Winslet/Leonardo DiCaprio Get Out of Jail Free Card and sell everything and start over in the new economy. Small house, fuel efficient car, low debt, meaningful job....but, unfortunately their story took place in the fifties. That was the beginning of the party and they didn't even have shows like Who Wants To Be A Millionaire. So I guess we can't get any clues there. Wait a minute... I know, let's invest in oil! That always goes up. Phew, that was close. This being rich is rough.

Recession - Its Causes & Effects

It's been a lot of time we hear of "Recession" going on in US market. Everyone is talking about recession. We cling to newspapers, television news channels, and financial reports only to discover "what next" in recession. Technically, recession means decline in GDP or Gross Domestic Product of a country for two consecutive quarters. Now, this explains recession only as a definition to remember. When we go more deep, we need to first understand the meaning of GDP. Gross Domestic Product is the value of all final goods and services produced in an economy in a given year. These final goods are those goods which are not transformed into other goods. These goods are evaluated as per their market value. It means when the value of all final goods and services produced in a given year declines for two consecutive quarters, the state is referred to as "recession". It is visible in real GDP, real income, employment, industrial production, and wholesale-retail sales in an economy.

As per NBER (National Bureau of Economic Research), there have been ten recessions since 1945. From mid 1940s till 2007, the average recession lasted 10 months, while the average expansion lasted 57 months, giving us an average business cycle of 67 months or about 5 years and seven months. In this period, the shortest recession lasted only 6 months, from January to July 1980. The two longest recessions during this period lasted 16 months each, one extending from November 1973 to March 1975, and the other from July 1981 to November 1982. There was a noticeable decline in real GDP in both of these periods. The shortest expansion period from the mid-1940s until 2007 lasted only 24 months, from April 1958 to April 1960. The longest expansion continued from March 1991 to March 2001, setting a record of 120 consecutive months of growth. As luck would have it, United States has experienced only two relatively mild recessions and extended periods of expansion over the past 25 years.

There are various factors that flush an economy into the weird state of recession but Inflation is the main factor which contributes more towards the situation. Inflation is a condition of an economy when the prices of goods and services rise immensely over a period of time. The higher the rate of inflation, the smaller the percentage of goods and services that can be purchased with the same amount of money. This may be because of increased production costs, higher energy costs and national debt. When the prices of goods reach their ever higher stage, people tend to cut on overall spending, luxurious spending, restrict them towards basic necessities and thus save more n more. As a result, GDP declines when people begin to cut expenditures in order to cut down costs. This makes the companies to cut their costs as well and they chuck out workers which brings unemployment.

Thereby, following are some of the factors that push an economy into recession.....

- Credit crunch - shortage of finance
- Falling house prices - related to shortage of mortgages and credit crunch
- Cost push inflation squeezing incomes and reducing disposable income
- Collapse in confidence of finance sector causing lower confidence amongst 'real economy'

Recession brings with itself all major consequences which create mayhem within the economy. One of the major effects of recession is Inflation. Recession comes into effect with inflation while on the other hand; it is one of the after effects of recession. This means the commodities reach their ever highest prices and people generally cut down on costs. Hence, inflation becomes the major effect left out by recession. Lower income is another effect of recession in the economy. As people cut down on costs, they tend to buy less which reduces the income and thereby fewer profits or no profits. The next consequence is the increment in mortgage rates. Lenders increase the mortgage rates in a bid to cover the losses they bear during that time. Employment opportunities are also one of the main targets when the economy is burning under recession. In order to cut down on costs, companies cut down on employment opportunities thereby leading with unemployment in the economy. So when an economy enters into recession, firms experience a decline in profitability.

Economic Depression Definition

A depression can affect a community, a region, a nation, or the world. Economic depressions are often defined by several characteristics:

1) Massive unemployment: During a great depression, many businesses suffer a large loss of sales for their product or service. For this reason, many businesses often reduce their labour force by large amounts. Many businesses can go bankrupt during a depression, eliminating many jobs that were provided with the business.

2) Social degradation: Economic depression is often very bad for a functioning society. With large unemployment rates, many people can not get jobs. Thus, food lines, crime, prostitution, mass movements of people to various places , and other forms of social degradation are often common. Many people are forced to rely upon the government for help in these distressing times.

3)Degradation in social services: Many people use government services of one form or another during normal economic patterns. Often, during prosperous times, individuals who are not currently employed can rely upon government assistance programmes until they can find another job.

However, during economic depressions, large portions of society may become unemployed. As a result, social services provided by the government can be put under sever pressure. Also, as many more people depend upon social services for their needs, a government's ability to provide those services becomes much more difficult. This is due to a drop in tax revenues provided by now existing businesses, as well as the employees of the government. As one can see, a sever economic depression is not good for anybody.

The Future of Money

Money has been with us for over two thousand years, but its basic form has changed from gold coins in Ancient Rome, printed paper in ancient China to the crisp Banknotes and coins of today. The problem is, the way we value these banknotes and coins has changed, since ancient times, and this could change in the future.

Printed money is only really valued at a value we accept, or in the international Marketplace, Traders and Governments accept. The value of money technically is rather like Stocks and shares; they could have high values one day, and then like the Share prices of many large Corporations become worthless overnight.

This is the most worrying trend for many cash strapped Governments in this current crisis. As the value of their Nations property, and Stock Markets continue freefalling, and emergency cash is injected into an ailing economy, to stop the freefall. How are they going to raise money to fund this emergency treatment of our economy?.

Traditionally printing money by selling guaranteed Government bonds is the answer, failing this an emergency loan from the IMF. However the IMF itself is primarily funded with money from developed Countries, the same Countries today that are going to be short of money, if any bailout or stimulus packages fail to work.
Printing money may be an answer, but that leads to inflation and if the economy fails to recover, and even freefall again, a devalued and useless currency.

Already the British Government have seen the pound drop by as much as 35% to other currencies, before any stimulus packages have started to show positive results. Most British Banks are in reality broke and debt ridden, and now owned by the state. Previously the nations money supply was fed through these banks, in the form of credit and loans. Now these banks in real market terms should be closed down and declared bankrupt. But that would only lead to the real value of the pound decreasing, One reason toxic banks were bailed out.

The USA faces an even bigger crisis, American banks have more debts then their value, and continue to eat up precious public funds. Funds needed to stimulate the economy again, not prop up failed banks. The USA owes up to 80% of the nations estimated GDP as interest bearing debts.

The only way the Government can raise funds and prop up the dollar is by raising funds through selling interest bearing Government bonds, whilst printing new dollars based on the value of these bonds. If the current economic plans fail or even slightly succeed, the US Government may be forced to issue more bonds, that would lose value, as the dollar could naturally devalue against stronger currencies.

So what are the options if these plans fail to prop up or stimulate the old economy?

One idea comes from the realms of Science Fiction, Credits. Simply by replacing traditional currencies with credits, creating a cashless society could eliminate the need for a national currency.

Implementing Credits would be easy considering that many Nations today do own their banks, whether they have been nationalized or partly bought out by Governments. Credits are awarded to every citizen, who in turn have a national banking card issued by their governments.

Determining the value of these credits would be straightforward as banks are mainly public not private institutions. Therefore Citizens of a Country could see their savings or debts automatically changed into credits, without too much official legislation.

Abolishing cash money would change the economy overnight, as struggling Governments could save their economies from freefalling. It also cuts off the "informal economy," and allows Governments to 100% control the real money supply.

One drawback with credits would be determining the international value of them against a currency. Stronger Economies running well in times of recession, grow stronger and would probably disagree with trading with these countries, unless their still was an International Currency market.

One thing is certain, if bailouts and stimulus packages fail to stop a freefalling economy, then our Governments will be forced to seek more drastic and unconventional methods to save what's left of the old economy. Leading to a change in economics, that could mean the eventual abolition of money as we know it.

Traditional Vs Online Shopping

Shopping is shopping, right? Well, not necessarily. At one time, the only way to shop was to leave your home and visit a store. Nowadays, the Internet has revolutionized the way in which we spend money. But how does it add up compared to traditional shopping?

Well, we need to weigh them both to see how they compare to one another.

Traditional shopping

In traditional shopping, you simply take a ride in your car to your favorite shopping center or store and you buy what you want or need. You can pay with cash or credit card. In some instances you can pay with a check. You do get the opportunity to see the product before you purchase it and you can keep an eye on your credit card if you decide to pay with that method.

All of this seems rather great, doesn't it? However, there are always cons to the pros when it comes to anything and everything.

The cons that you may run into when it comes to traditional shopping is that the store you are shopping at may not accept your payment method. There is also the fact that they may not have what you want. You may even find that the item they have is more expensive than what you want to pay. You may know that another store carries it, but they are out of it because they sell it at a cheaper price.

Yes, there are instances in which you must shop the traditional way. For example, you may need an item right now, which is true of grocery shopping. When you need milk or you need formula for the baby, you have to be able to go to the store and get those things immediately.

Online shopping

When it comes to online shopping, you don't have to leave your home at all. You simply sit down at your computer, browse around the various online stores, and find what it is you need. However, there is usually only one way to pay. You can only pay via credit card. There are some websites that allow you to use your PayPal account or they will permit you to send them a check before they send you the item. The check method doesn't work so well when you need the item right now.

As for the cons, you are not able to keep an eye on your credit card number like you can with an in-person transaction. You can, however, ensure that you are doing business with a secure site by looking in the address bar and seeing if there is an https:// present. You can also read website reviews to make sure a site is secure. You also do not get the opportunity to see the item right in front of you before you buy.

However, the advantages continue because, if you can't find an item at one store, you can always find it at another. There really isn't much that you can't find on the Internet. You may not want to grocery shop online, but gifts, clothes, and many other items can be purchased and shipped right to your door. If you don't like them when you get them, you can always ensure you're doing business with a company with a good return policy.

So which seems better to you? Do you prefer the traditional way or the online way? It is a personal preference when it comes down to it. Really, all you need to do is shop the way you feel comfortable, but know that you are going to find some great deals online that you may not be able to offline.

Indian Economy Overview

India has the twelfth largest economy in the world. It has Purchasing Power Parity GDP at 1.5 trillion US Dollars, with a per capita income of 4,542 US Dollars. The process of privatization in India is continuous.

The government controls Indian economy. The government's economic approach has been partially influenced by the Socialist movement. It has a high level of control in certain areas of the economy like foreign trade or the participation of the private sector. The World Bank classes India as an economy with low-income. More and more investors think that the Indian market might be undervalued and they see this as a good buying opportunity.

There is still a big difference between the rich population and the poor. One of the major issues in India is still the level of poverty, although there has been improvement over the past few years. Poverty is higher in the rural areas, because here people take income mostly out of agriculture, which depends on the monsoon season and the weather in general. Lack of rain for irrigation can lead to a minimal production of crops in certain years. The rate of new births is also alarming. The family unit in India is usually quite large. Birth control policies, like China's 'One Child' policy, are taken into consideration in order to limit the number of people living in poverty.

A huge workforce is what characterizes the dynamic and expansive Indian economy. It is very diverse, with a wide range of sectors: manufacturing industry, handcrafts, textiles, services and agriculture, the last being the source of income for over 66 per cent of the population. India is in the second largest country in the world in volume of output, from the point of view of agriculture. In 2005, the agricultural sector contributed 18.6% to the country's GDP. There has been a growth in the manufacturing sector from 8.98% in 2005, to 12% in 2006.

The population who speaks English keeps growing, making India more appealing to the United Kingdom or the United States. The service sector is rapidly expanding. India now exports the services of more and more IT professionals. There has been a real boom in the IT industry, helping Indian economy grow at a considerable rate. In 2007, this growth rate was around 20%. India is also expected to make considerable progress in other areas such as pharmaceuticals, manufacturing, tourism, aviation, telecommunications or biotechnology.

Global Economic Crisis Fuels Online Business

The global economic crisis affects markets all over the world coming in all shapes and sizes, from national crises that impact all types of organizations to industry-specific crises; many employees are steadily losing their jobs.

When a crisis occurs, the first step is to admit to yourself you've got a problem. And If you are to survive and prosper, you must understand what is happening and act now, find a way out of this problem. In today's world private independent business proves to be more stable. No wonder why, nobody is going to fire you. Yes, it requires more efforts, attention and diligence but there is no success anywhere without endeavor.

Is it possible to start a business with minimum investment? Yes! Start online business. Online Business experienced in the last few years an explosive growth of revenue generated over the Internet through e-commerce. World Crisis positively impacts online industry, experts say.

Now if we take an example of real estate online business then the definitely it comes to mind that the online real estate sites will suffer due to crisis but fortunately there is a positive aspect too. The real estates having tough time and looking to cut cost so it is best for them to concentrate more on internet while limiting the off line activities. There is even a ready solution for that - PG Real Estate Solution - a package that will create your own Real Estate Portal which is in high demand in current situation. With good and free customer support, free installation - it appears to be a good companion in starting a new source for revenue.

Employment situation is one of the most topical during World Crisis. People are losing their jobs and start looking for a new one; employers are looking for professional staff to save their companies. This is what makes Employment web sites and Job Boards in high demand. Launching a Job Board/Employment Website is another great idea to profit from the crisis. You don't need an expensive custom website for that, there is a ready-made package available - PG Job Site Pro - powerful software that will do most of the work for you. It will create a Job Board/Employment Website that you can start today, why wait any longer before this field of online business is occupied by someone else? Now is the time to take on the challenge.

The Media and Your Crisis

Communication with the media during a crisis is key to the success of your strategy. Make no mistake, The media will play a major role in your crisis. It's critical, that you gain control through the media during the early stages of a crisis, to prevent fear and apprehension spreading.

The media want accurate, detailed information, so they can write their stories and inform the public. They're only doing their job. And while they may appear intrusive at times, that may well be because the flow of information is not forthcoming.

The media will write stories about your crisis with or without your help. Some media outlets will take a negative slant, while others will run with a more positive story. Don't blame the media. Remember openness and respectfulness during a crisis enhances your credibility with the media. It can help you in the long run. Having a strong relationship with the media will help you in times of a crisis.

The media need to be looked after during your crisis. They often need to be pampered, like anyone, they need to be loved. While you may not feel obliged, you should always try and do the right thing by the media Make sure the media have reasonable access to the scene of the crisis, and offer other facilities that will make their job easier, such as: Phone Electrical outlet Desks Chairs Fax Computer Keep a log of reporters who have called and used the facilities.

How to Market in a Really Bad Economy

Eight marketing ideas to help your small business during a bad economy.

Even if your company is doing well during a down economy, you need to make plans for customers who may start cutting back. They key is to shift your marketing from image-oriented marketing to direct response, measurable advertising.

If your business is already feeling the effects of a weakening economy here are some strategies you can use to market in a bad economy.

1. Place your focus on more direct forms of revenues versus "image advertising." It's time to show good, measurable results. Coupon redemption programs and the use of promo codes can be very effective. When the economy is down everyone is looking for bargains. With coupons and promo codes you also get to track what's working and what isn't.

2. Learn more about your customers needs. Surveys don't have to cost anything. If you have an email list, you can build a quick survey to send out using Survey Monkey. It's free and easy. You can also put the survey on your web site and offer something free for people to take the survey. Since you may not be able to advertise everything during a bad economy, it's smart to know where to put your money.

3. Call in favors from your vendors. You need to get the biggest bang for your buck. I'm not suggesting hitting up your vendors for such large discounts that it places an undue strain on them. However, get what you can while keeping your relationship good and making sure they stay in business to serve you throughout the downturn.

4. Not all customers are created equal. See who has purchased the most from you and make sure you stay close to them. As your best customers, they should be entitled to any perks you can afford.

5. Stress ROI. All of your campaigns need to convey how your customer will profit from your product. And you need to be as certain as possible that your advertising campaign will pay for itself. When you start a business you obviously need to watch your pennies. However, don't abandon this practice as you grow your business.

6. Test. Test. Test. Segment your list and try different subject lines, headlines and sub heads. Try different offers. The key is to find the one combination that hits the sweet spot and use that one. This point brings us back to the importance of measuring your results. With limited funds when starting a business you need to know which message gets you the best results.

7. Try to "convert" everyone that comes to your web site. By convert I mean capture their name, company, email, and phone number. Get this valuable marketing information by offering your visitors valuable content. Reports and videos are great things to use. Think about any content and information that would help your customer or prospect succeed - especially in a bad economy.

8. It's time for family values. When hard times hit, people tend to go back to the nest. Try to position your product in warm, fun, family-oriented scenes. Even if your product doesn't quite fit that image or is more business oriented, every product will affect someone. The image could even be a coming together of office workers around your product. "Paint the picture" how your product makes a warm, positive impact on someone or something.

While no small business likes bad economic times it can be an opportunity to sustain revenue, build brand awareness and brand loyalty, and strengthen ties with your customers.

Professional Experience: I have have been in the computer industry since 1976. Starting as a data processing recruiter, I moved to account management positions at Digital Equipment Corporation (DEC) for four years and EMC Corporation (EMC2) for two years before starting MindIQ in 1986. During my term as CEO, I have grown the business four different times, bringing to market several products and getting our company included in the Inc. 500 list of fastest growing companies.

Source : EzineArticles and Louis Bernstein