The Party. The Hang Over. Now...THE RECESSION...

[Confucius]

This topic is way to important to not have its own thread... I don't know about you...but this is causing havoc to people who are close to me. And yes, we are in a recession.


http://www.reuters.com/articlePrint?...39525420081009

UPDATE 1-U.S. bank National City in sale talks -WSJ
Thu Oct 9, 2008 2:26am EDT
(Adds background)

Oct 9 (Reuters) - U.S. regional bank National City Corp (NCC.N: Quote, Profile, Research, Stock Buzz) is in talks with a number of banks about a possible sale, the Wall Street Journal said, citing people familiar with the situation.

PNC Financial Services Group Inc (PNC.N: Quote, Profile, Research, Stock Buzz) and Toronto-based Bank of Nova Scotia (BNS.TO: Quote, Profile, Research, Stock Buzz) are among the potential bidders, the paper added.

National City and PNC declined to comment and Bank of Nova Scotia couldn't be reached, the paper added.

National City did not immediately return a call from Reuters seeking comment, while PNC and Bank of Nova Scotia could not immediately be reached for comment.

National City had said in late September it had no plan, intention, or need to raise additional capital, or the need to undertake any particular transaction because of insufficient capital.

Shares of the big Ohio-based bank have plummeted over 85 percent so far this year as the regional bank sector suffers from a crisis of confidence, even as Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) and Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz) spar over another regional bank Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz). (Reporting by Savio D'Souza in Bangalore; Editing by David Holmes)


© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

I guess this is better than the bank going under completely. This sub-prime mortgage mess is unbelievable.

[Confucius]

AIG getting fresh billions from Fed, defends event
Wed Oct 8, 2008 6:47pm EDT

NEW YORK (Reuters) - American International Group Inc could get nearly $38 billion in fresh cash under a program announced by the Federal Reserve on Wednesday, as the insurer tried to fend off criticism of a lavish event held days after getting an initial $85 billion government loan.

Under the new plan, the Federal Reserve Bank of New York will take up to $37.8 billion in investment-grade, fixed-income securities from AIG in exchange for cash.

The securities were previously lent by AIG's insurance company subsidiaries to third parties. The Fed said the new program will allow the company to replenish liquidity used in settling transactions with counterparties.

AIG had drawn fire in Washington on Tuesday for spending $200,000 on hotel rooms and $23,000 on spa services at an event, just days after it got the emergency loan from the government to avoid bankruptcy in the middle of the worst credit crisis since the Great Depression.

As lawmakers grilled former top executives at a hearing, Rep. Elijah Cummings, a Maryland Democrat, said: "They were getting facials, manicures and massages, while the American people were footing the bill."

On Wednesday, AIG said the "business event," hosted by one of its subsidiaries, was for independent life insurance agents. It said the event was planned "months before" it received the loan last month, and no AIG executives from headquarters attended.

AIG's effort to correct the record on the event came after White House spokeswoman Dana Perino used the word "despicable" on Wednesday when asked about the AIG event.

"I understand why the American people would be outraged," she said at a White House briefing. "It's pretty despicable, to realize how callous somebody might be."

President George W. Bush did not intend to benefit industry titans when he approved the bailout of AIG and a wider $700 billion Wall Street rescue package, she said.

"Rewarding failure is something we have a very hard time swallowing," Perino added.

AIG said current Chief Executive Edward Liddy had written a letter to Treasury Secretary Henry Paulson to clarify the circumstances of the business event.

The company said Liddy assured Paulson that AIG now faces very different challenges, saying: "(W)e owe our employees and the American public new standards and approaches," and that the company is "re-evaluating the costs of all aspects of our operations..."

AIG said 10 employees from its subsidiary, AIG American General, attended the 100-guest event.

(Reporting by Jonathan Spicer, with additional reporting by Andy Sullivan, David Lawder and Glenn Somerville in Washington, and Juan Lagorio in new York; Editing by Tim Dobbyn)

http://www.reuters.com/article/newsO...4979Q320081008

[AKA_Monet]

'Tis sad... Like everyone's bailing out and we, the taxpayer, are left with the bill...

[Little32]

So how are people thinking about weathering this storm? What are your strategies?

[SummerChild]

I tried to get that three months of pay built back up in the bank. I probably need more the way this economy is looking.

I stopped contributing to my 401K in June. I won't start back up again until the economy comes back - or at least until 2009. I'll save my money post-tax, and lose the advantage of pre-tax savings, but hey, at least i know it will be there if I go looking for it....

I now have a budget.

I am thinking seriously about starting to take the train to work and saving on gas costs...and the cost to pay for monthly parking at my work location, which is roughly 100 per month (plus the 150-200 that i pay every month for gas).

i am trying to pick up a foreclosure downtown (where the market is still somewhat booming), put it right back on the market and let it sit while a close relative lives in it and pays the mortgage. then whenever it sells, cut my relative in and pay off some student loans. we'll see. b/c paying 200 extra per month does nothing for lawschool student loan debt (esp when you have graduate degee debt too).

those are my strategies.

SC

Originally Posted by Little32

So how are people thinking about weathering this storm? What are your strategies?

[preciousjeni]

Originally Posted by SummerChild

I now have a budget.

A budget is so essential! I've always had some form of budget, but since I got married in 2006, my budget got very specific and rigid. I've determined that we literally cannot afford to have TV, even the $18/month basic cable. People think I'm crazy for being so strict with the money, but doing so (and making smart financial decisions) has allowed us to live comfortably, buy a car, pay off all the family debt and buy a house within the past two years.

We're also looking into using the limited bus system along with being much more critical about our travel/transportation needs vs. desires. And, something we've been strongly considering is part-time jobs to build our savings account back up and pay off our mortgage more quickly. I'm hoping to have it paid off within ten years, preferably 5-7.

[Confucius]

Originally Posted by preciousjeni

A budget is so essential!

So essential is right and I bet a lot of Americans are thinking the same thing. I think that you and Summerchild are on the right track.

I am trying to figure out how much cable and phone I can cut off from my Comcast package. The only problem is that my cell phone doesn't really work in my apartment and my tv can not pick up a signal (and my tv is up to date). However, the basic package for the local channels is $20.00 a month and I would have to shell out $40.00 for my internet service so, I would still have to fork over $60 for about 7 channels and internet service. But I would save $70-$80 a month.

But to be honest, I did not have cable until I moved into my current apartment. I had no need for it. I watched local channels and used the DVD player and internet for almost everything.

Summerchild, I have not stop putting money in my 401K BUT I cut my contributions back by 50% I cut my contributions back to about 2% for the time being. Plus, I am not fully vested so, I should be ok.

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

It is weird that b/c our economy is so jacked, gas prices keep going down

[Honeykiss1974]

I've always lived on a budget - shoot I even budget my "play money" every month. (Play money is more than I'm allowed to spend on non-essentials such as new lip gloss, a new hair product, etc.).

I have definitely started to cut down my "play money" budget and have started be more observant of grocery store sales, etc.

Originally Posted by Confucius

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

OMGoodness, this is soooooooooooooooooooooo my issue too. After sitting here calculating, I spend about $50 a week, which adds up to $200 a month!

Originally Posted by Confucius

It is weird that b/c our economy is so jacked, gas prices keep going down

I always said our gas price was high primarily due to speculation but most people thought I was crazy. LOL I should ask them now why they think the price of gas is so low now. Here in Kansas, it was $2.67 when I filled up today.

[SummerChild]

Confucius,
For years, I lived w/out a cellphone or a cordless phone. I have NEVER had cable. How do I get along w/out it? Well, I talk to my friends on the phone, watch local tv and spend time with my man and with family. I really don't have much time to be surfing all of the channels that cable provides. Since I have been either working or in school since 1992 (ugrad, grad and lawschool), I have felt that if I had that much time on my hands, I could be asleep or going out and experiencing the world for MYSELF instead of watching someone else's world on tv. So, you might consider living w/out cable. Go to Walmart and buy an electronic antenna, ya heard. You will get at least three stations, and if you can't live with that, go out and get a life is what I tell people. You won't be watching so much tv anyway. (Not talking to you, just talking in general.)

Also, I cut my landline phone bill back to the basics - no caller ID, no three way calling, no star 69 service... and I told them to give me the $20 fee (not package) that consists of nothing but a telephone line. Yes, that's right. It is not a package and the sales people always act like either they don't know about it or can't figure out how to do it. Ask for a manager and tell the manager that you don't want a PACKAGE. You just want to know the cost for a basic telephone line. In NJ, it's $13. In Atlanta, it's about $20. It is amazing how much we pay for phone service in the home and most of us are either never there or use our cellphones. I would cancel the service altogether and keep only my cellphone, but I have a home security system that requires that I have landline service at my home. Otherwise, getting rid of the landline can save up to $70 per month, once they finish adding the FCC and everyone else's taxes to the bill.

Also, for my cellphone service, I use MetroPCS. Is it in your area? Metro gives unlimited local and long-distance and 411 and texting for a flat $40 per month. YOu never have to worry about overage charges (which used to eat me alive to the tune of over $100 per month) and there is NO CONTRACT. The drawback is that if you travel out of state, you may have to buy minutes (or something like that) depending on where you go. The way that I see it, I'm like, hey, I travel from time to time for work, I can go old fashion and simply get a calling card for $10 for those rare occasions when I'm not in my home state. Metro saves me a huge amount off of my cellphone bill each month.

I also don't get my hair done each week like I use. Yes, I use to get my hair done every week. That alone was roughly $200 per month. I haven't been to the hairdresser since June. I wash it, blow dry it, even relax it myself and just yesterday, I was getting my acrylic overlay (one of my few luxuries at $25 for a full set in Atlanta) and the *hairdresser* complimented me on my hair. Ok??? I told her, honey this is 6 months of nothing - for roughly FREE, ok???

My problem is that I don't cut way back on everything. I just do some of these things so that I'll have more money for some other things that I want to do...like trying to pick up a property and building my savings back up. But each little bit helps, I guess.

I just started on my budget this week. It's been a little tough b/c I don't like to have to think about what I'm spending. This is someone who never thinks to ask how much something is until the cashier rings it up. Yes, literally, it's a curse. The price doesn't even dawn on me unless it's something like jewelry (i.e., something that is WELL KNOWN for being extremely expensive). So it's a little bit of a drag to have to watch what I'm spending. This is also another reason that I'm not rushing to get down the alter. My beau has let me know that I'm "the one"; however, does a sister really feel like having her spending habits scrutinized? Not so much. LOL. Folk always trying to get down the aisle and get "chosen" by some man but that stuff comes with strings. I was buying a number of purses a couple of weeks ago (6 purses, yes, I know that's awful) and the lady who was selling them wanted to know if she needed to meet me in the alley to get the purses to me so that my husband wouldn't know about them...and she was completely serious. I told her, honey, wrap those purses up. I don't answer to anyone on this earth. So there you go, my spending habits are somewhat erratic and so a budget is hurting a little. But at the same time, I save so much on other stuff - like no cable and other things that maybe it all balances out.

I will be checking back on this thread to see how I can reduce spending.

Does anyone know how to get and keep utility bills down? Is it true that if I unplug everything, it will make a significant difference in the electricity bill?

SC

Originally Posted by Confucius

So essential is right and I bet a lot of Americans are thinking the same thing. I think that you and Summerchild are on the right track.

I am trying to figure out how much cable and phone I can cut off from my Comcast package. The only problem is that my cell phone doesn't really work in my apartment and my tv can not pick up a signal (and my tv is up to date). However, the basic package for the local channels is $20.00 a month and I would have to shell out $40.00 for my internet service so, I would still have to fork over $60 for about 7 channels and internet service. But I would save $70-$80 a month.

But to be honest, I did not have cable until I moved into my current apartment. I had no need for it. I watched local channels and used the DVD player and internet for almost everything.

Summerchild, I have not stop putting money in my 401K BUT I cut my contributions back by 50% I cut my contributions back to about 2% for the time being. Plus, I am not fully vested so, I should be ok.

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

It is weird that b/c our economy is so jacked, gas prices keep going down

[Honeykiss1974]

/\/\/\ I never found unplugging electronics to really make a dent in my utility bills. The only thing that really made in my electric bill was keeping my themostat steady, especially in the winter. Fortunately, my windows face the northern sky so I never receive direct sunlight (which helps). Doing this cut my bill nearly in half especially during the winter.

I would try that and see what works for you (temp wise). I'm naturally a "hot" person so in the summer, I CAN'T STAND to be too hot so I did keep mine at a cooler temp. But in the winter, 55-60 worked for me.

[I.A.S.K.]

I really do not have a budget as I am a broke college student.
I have 2 jobs and all of my $$ go straight to my university to cover my tuition and R&B and fees (which still aren't being paid in full with a loan, scholarship, and 2 jobs so I'm thinking about getting a 3rd next semester).
I get two meals a day on my meal plan and so I make sure that for the most part I only eat those two. (I try to jack food from the cafeteria as much as possible because the way I see it is the food is horrible and can only be eaten in small amounts so taking some with me is only fair, bump the rules!)
I hope to buy a fridge for my room so I can have some food that I know is edible. The last time I ate in our cafe my throat started swelling up about 30mins later and I have no known food allergies (and all of what I thought I ate I know I'm not allergic to, so that right there is questionable).

On saving $$ on energy (since saving the environment is one of my passions)
1. I agree with HK1974 on the regulating your temps in your home. In my moms house the temp control was split between the upstairs and downstairs. We only heat the upstairs in the winter and even then not all that much. Also we had a timer that would allow you to set the temp for different times of the day. So from like 8am-5pm when no one's home its basically off and it turns on upstairs at like 6pm when people get home and then we adjust as necessary while we're there.

2. To save on your energy bill:
I did a little research and it seems that basically appliances like cellphone chargers, chargers in general, tv's, clocks and things with built in clocks (like microwaves) do use energy even when turned off. The amount of energy..I cant really tell.
This surge protector claims to save energy
http://www.household-gadgets.com/sma...protector.html

Here's a Yahoo Answers page on the unplugging appliances question
http://answers.yahoo.com/question/in...7130413AAdEIN2

And here is a list that details how much energy those small appliances actually use
http://www.consumerenergycenter.org/...mall_appl.html

3. I suggest using CFLs in your home.
Why Choose GE Energy Smart Bulbs?

• Save money: On energy and bulb replacement costs
• Save energy: Up to 75% less energy
• Last up to 10 times longer
• Turn on flicker free
• Most provide the same light output (lumens) but use lower wattages

• Soft white and daylight color temperature options
• Fit in most common household sockets/fixtures
• Instant-on feature
• Dimmable and 3-way products available
• ENERGY STAR® qualified

You can use the link below to calculate what your energy savings would be if you switched to CFLs. If you're in Atl I have a friend who's organization converts people's homes to CFLs (for free).
http://www.gelighting.com/na/home_li...hting_calc.htm
If that doesn't work go here (and you can also use this for more info):
http://www.gelighting.com/na/home_li...ergy_smart.htm

[RaggedyAnn]

I found out that I didn't need to have extended basic in order to have digital cable. (I absolutely love the channel guide with my digital.) I got my bundle discount, because I only needed digital. I lost around 80 channels, but I still have over 100. I also chase the $5 movie channel deal, which for us saves on going out. I saved over $40 a month that way.

[Confucius]

Originally Posted by RaggedyAnn

I found out that I didn't need to have extended basic in order to have digital cable. (I absolutely love the channel guide with my digital.) I got my bundle discount, because I only needed digital. I lost around 80 channels, but I still have over 100. I also chase the $5 movie channel deal, which for us saves on going out. I saved over $40 a month that way.

Good stuff...I looked at the new pricing by Comcast....and lets just say.....I was steaming....

I wanted to cut my services to Limited Basic Cable & Internet....well....needless to say...the cost of Internet connection alone is $50-60 w/out any of the other services. So, to make a long story short my bill would be pretty close to $100 with any combination of services.

Comcast once had a promotion the consisted of the Internet, Phone, & Cable for $100, now that deal is $120 + taxes, cost of cable box, and HDTV connection if you have one. So, that equals about $140 per month.

I am looking into Verizon but I wonder how much my bill will shoot up after their 3 for $100 promotion?

Very interesting....

[SummerChild]

If you don't use your internet and email much, and if you can stand dial the wait, since you are in school, you can probably dial into your school's system and access the internet that way. If you're interested, check with the folk over at your computer lab for how to do it. It's free. Yay. LOL. I did this for years. It worked well for me b/c I really wasn't on the internet much besides checking email and paying bills. But for folk that download music and all that bandwidth intensive stuff, I know that dial up can be a nightmare. Anyway, just another possible cost cutter. I used the school's computer lab for the other times that I needed a connection. Again, it was free. Yay. LOL.

The other thing that you could do to get rid of the $50 cable bill is to just get on Greekchat and do your email (and your other online activities) at school at the computer lab.

Also, on the cell bill. People are not hearing me. METRO.PCS. Unlimited calls, unlimited texting, no contract. $40/month. OR Unlimited calls, no texting, no contract. $30/month.
I don't know why I didn't switch sooner. The other folk were charging me roughly $100/month - that's a lot of unnecessary money their way - just for me to talk on the phone. Shoot, for $100/month, talking on the cell was getting way overrated for me. LOL.

Here's another tip for those who go to the gym just to get on the treadmill to the tune of $30/month. You can buy a treadmill and use it in the convenience of your home for $300 (check the Walmart brand; Sears also has a brand for slightly higher, but still not even 400), which is less than the cost of a year's membership in the fitness club. You can also throw in a set of barbells for strength training and STILL be less than the fitness club. Of course, if you're there to meet the cuties (been there, done that LOL), then keep the membership. LOL.

SC

Originally Posted by Confucius

Good stuff...I looked at the new pricing by Comcast....and lets just say.....I was steaming....

I wanted to cut my services to Limited Basic Cable & Internet....well....needless to say...the cost of Internet connection alone is $50-60 w/out any of the other services. So, to make a long story short my bill would be pretty close to $100 with any combination of services.

Comcast once had a promotion the consisted of the Internet, Phone, & Cable for $100, now that deal is $120 + taxes, cost of cable box, and HDTV connection if you have one. So, that equals about $140 per month.

I am looking into Verizon but I wonder how much my bill will shoot up after their 3 for $100 promotion?

Very interesting....

[Confucius]

Also, I guess I have to do a little more research myself but I have been hearing reports that Credit Card companies are really starting to jack people. For example, starting early next year (my guess is Feb...after Holiday season), companies will automatically start running card holder's credit, lowering credit limits and jacking up interest rates even if your credit score is (good).

I wonder how bad the credit crunch is going to kill pockets of those with credit cards? Luckily...I have about 2 more payments and my CC debt will be very VERY low...