Home Buyer Education

In the wake of the housing crisis that left many home owners and real estate investors coping with significant equity losses, educational agencies in the business of training prospectives home buyers are seeing a surge in business. Individuals who know family and friends burned in the wake of the housing bubble collapse and mortgage fiasco are seeking sounder methods for financing a real estate purchase, as well as assistance in determining which regional markets are offering the safest investment. This article from the personal finance section of Fox Business explores the increase in consumer awareness of what home ownership involves.

In Wake of U.S. Home Crisis: Buyer Education

"Concerned by foreclosures but keen to take advantage of sliding home prices, a growing number of prospective buyers in the United States are signing up for a different kind of class: home-buyer education. "These people have seen what's happened around them, to their neighbors, their friends or their family," said Tim Bolding, executive director of United Housing, a nonprofit lender that offers such classes..."

Investing Insights

With the stock markets producing as much volatility as most Americans can handle, words of wisdom from investment experts can provide the reassurance individuals investors are looking for. Considering how many articles have come over the course of the past few months suggesting alternatives for the placement of capital, such as bonds and money market accounts, it's refreshing to read something from a market analyst who, even during times of economic turmoil, advocates a long-term approach to investing, and embraces the fact that, historically, stocks have provided the greatest returns of any investment over time. In his final column for CNNMoney, personal finance editor Michael Sivy takes a brief look at the entire investment landscape, and lays out principals for making successful decisions when it comes to your portfolio.

What Every Investor Should Know

"Before Money's veteran stock picker departs for academe, he shares his insights on investing. I'm retiring and will soon be headed to Oxford University to begin my second act. So this will be my last column for Money. At a time like this, it's only natural to look back at one's career. So I've been reviewing my articles of the past 23 years to see where I've been right and where I've been wrong - and why. I've come to a simple conclusion: There are certain things that you can know as an investor and other things that you can't..."

Foreclosure Data Analysis

June's foreclosure report by RealtyTrac Inc., a leading foreclosure tracking company, showed a decrease in foreclosure filings for the month, and analysts are predicting the July report to show this trend has continued. On the surface it would appear that the foreclosure crisis may be subsiding, and measures taken by state and local government to improve conditions within the housing market may be working. However, when one considers the way in which the new foreclosure laws are structured, specifically the increased time that has been given for homeowners to fix their mortgages, what could really be happening is merely a delay in the time it takes for properties to enter foreclosure. This article from the Wall Street Journal examines how several foreclosure laws that recently went into effect could be scewing the data in a number of reports analzying both national and regional foreclosure trends.

Slowing Foreclosures May Mask Breadth of Woes

"When the research firm RealtyTrac Inc. releases its latest foreclosure report Thursday, don't be surprised if the number of filings declines again. Last month, RealtyTrac reported that foreclosure filings totaled 252,363 in June, down 3% from the previous month. Some analysts are expecting the July data to show another decline or very little change..."

Low-Wage Earners

Over the course of the coming weeks, the Washington Post personal finance section is going to have a series of reports examining the financial struggles of low-wage earners. Americans face yearly increases in the cost of living, and the hardest by this trend are those whose incomes place them near or below the poverty line. This problem is amplified in no small part because of another economic trend, the stagnation of income growth. Despite the good economic numbers released last week, nearly a quarter of the nation's adults who aspire to improve their financial status continue to encounter significant economic obstacles.

Hovering Above Poverty, Grasping for Middle Class

"Low-wage workers in the United States are gripped by increasing financial insecurity as they inch along an economic tightrope made riskier by pervasive job losses and rising prices. Many struggle to pay for life's basics -- housing, food and health care -- and most report having virtually no financial cushion should they stumble. Still, they remain inspired by the American dream, with most saying they are more apt to move up economically than slip backward even if they are frustrated now. Most also expect better for their children..."

Maximizing Interest Earnings

One of the main motivations for saving is the interest that's earned over years of growing a bank account, but since September of '07 the Federal Reserve has been slashing rates to help prop up the economy, and savings rates have suffered. However, bank yields on savings accounts are finally trending upward after a period of dismal returns for depositors. In addition, with the stock market continuing to suffer declines, individual investors are increasingly looking to banks to diversify their assets and store cash, in an effort to decrease exposure to the volatile securities markets. While the national average for yields on deposits hovers around 2.5%, some banks are offering higher rates of anywhere from 3.5-6%. Accordingly, for those dissatisfied with the returns coming from their Certificates of Deposits (CDs), or concerned about the direction of the stock market for the next few months, savings and money market accounts offer a solid alternative. This excellent personal finance column from SmartMoney has everything one could want from a savings rate guide, including an analysis of the Fed's actions, links to banks offering premium rates, and an additional report on high-yield savings accounts.

Where to Find the Best Savings Rates

"With a series of Federal Reserve cuts knocking interest rates down to a measly 2% over the past year, there's been little incentive for cash-strapped consumers to be diligent about saving. But recently, things are taking a turn for the better. Despite increasing uncertainty about the Fed's next rate move, bank yields are on the rise. The current average savings rate is 2.4%, up from 1.6% in April, according to Bankrate.com. But at some banks, consumers can easily earn more than 3.5%, and may even qualify for rates that top 6%..."

Retriement Saving Stategies

One of the main reasons this website exists is to encourage readers to focus on the importance of a dedication to saving; as one of the biggest dangerous our economy faces is it's extremely low average personal saving rate. In a report by the Federal Reserve Bank, economic numbers confirmed that the average saving rate for Americans had actually fallen into the negative in the year 2005. For those individuals making a living on a limited income, it can be difficult to maintain a steady stream of deposits into the bank to help fund a retirement account, since some weeks many will have trouble just finding ways to pay every bill. As stated in previous entries, finding the means to continue with a saving routine after one has been established, even during the toughest of times, is absolutely essential for one's long-term financial security. In the latest column from his Ask the Expert series, CNNMoney personal finance writer Walter Updegrave provides advice for those worried about their prospects for a comfortable retirement.

Saving For Retirement on a Low Income

"With a little careful planning, you can still have a comfortable retirement. There are plenty of tools and resources to help you figure out where you stand. Question: Retirement terrifies me. My husband and I are in our 50s and have worked in relatively low-paying careers all our lives. We have about $100,000 in equity in our home and less than $200,000 in retirement accounts. We contribute to our retirement plans at work and plan to work well into our 60s, if health permits. I know we should be saving more, but I’m not certain how much more or how the money should be invested. Any suggestions?.."

401(k) Withdrawls

Americans struggling with serious financial burdens, whether brought on by inflation, mortgage rate hikes, or other factors, are looking to their 401(k)s to help the pay bills. Due to the fact that making an early withdrawal from a 401(k) entails considerable financial penalties, as well as the obvious tax implications, it's reasonable to assume that a majority of individuals treat this as an option of last resort. For those weighing the pros and cons of making this move, it could be of great help to crunch the numbers and determine the potential value lost by eliminating an asset that would experience significant growth through of years of compounding interest. However, there's also something to be said about the dangers of falling into credit debt; depending on the situation, an argument could be made that an individual would, in fact, be better served to draw from their 401(k), as opposed to adding a substantial balance to a credit card. The topic of early withdrawals is discussed further in this personal finance column from the Wall Street Journal.

Avoid Cashing Out Your 401(k)

"When prices are rising and bills are pressing, any available cash may seem like the perfect solution to a short-term crunch. And that means people switching jobs these days may be more tempted than ever to cash out their 401(k)s. That is a mistake, financial advisers say. Even if your account balance seems too small now to represent significant retirement savings, the power of compounding over time is a saver's best friend. And if you compare compounding growth to the downsides of taking the cash..."

Dividend Troubles

Whenever the stock market experiences a downturn, there's inevitably a capital flight to securities with dividend payments. Companies that pay dividends are seen as established, stable entities, and have the balance sheets to sustain dividend payouts; they are therefore considered a less risky investment than, say, a new internet technology firm. This is very similar to when individual investors adjust their 410(k)s to hold more treasury bonds than stocks at the onset of a bear market; asset quality takes precedent over the potential for returns during uncertain times on Wall Street. The hardest hit sector in the economy, unquestionably, has been financials, including banks, insurance companies, and brokerage houses. These firms are the most widely held group of stocks by investors who count on dividend income, as opposed to growth stocks and growth funds. Unfortunately for them, the high-quality, dividend paying stocks are increasingly harder to come by. As compared to 2007, there has been a substantial rise in the number of stocks that have either lowered their dividend payment or cut it all together. Smartmoney's personal finance section has this article examining the recent trend for businesses to slash their dividends in an effort to rebuild cash reserves, and in some cases, just stay afloat.

Dividend Funds Can Lessen Risk to Income

"When the stock market looks scary, companies that pay dividends are supposed to be safe havens. This time around things are trickier, since the bulk of trouble is coming from the traditionally high-yielding financial sector. In the second quarter, nearly 100 companies decreased their dividends, marking the worst quarterly showing in 18 years, according to Standard & Poor's. This is out of 7,000 public companies that report dividend data to S&P. Nearly 200 have cut dividends through the second half of this year. That's almost twice as many that did so in all of last year..."

Portfolio Adjustments

Taking a long-term approach to investing as part of an overall portfolio strategy entails buying stocks or mutual funds, and holding on to them for several years, as opposed to moving in and out of positions when the market soars or declines. However, this approach can lead to mediocre returns, or high levels of volatility within a portfolio when initial allocations get out of whack. Additionally, some investments that have traditionally under-performed the stock market for years may have seen a drastic improvement in underlying fundamentals, and therefore have become a sounder investment choice for a portfolio than one of its current holdings. There are so many factors to consider when deciding how to best improve the "health" of a portfolio, especially during a challenging economic period like the one the country is experiencing at the moment. USAToday Personal Finance has two excellent investing articles that, among other things, examine a few reasons why now might be a good time for investors to rebalance their portfolios, the benefits of maintaining a significant dividend yield year after year, and alternatives for long-term investments that haven't meet expectations.

Fund Guide: Feel as if Your Funds Have Been Left Behind?

"Year after year, you've heard the advice: Invest in stocks for the long term. Yet, for a full decade now, the Standard & Poor's 500-stock index has been outperformed by three-month Treasury bills, which have yielded just 3.3% a year. For all the market's ups and downs since 1998, you would have expected far greater returns from stocks than from ultrasafe T-bills..."

Fed Up With Your Fund? Consider a Change

"Wall Street is famous for its colorful expressions. "Fannie Mae," for example, started as trader's slang for the Federal National Mortgage Association. A "load" is a sales commission on a mutual fund. The "Spot market" is where you buy a dog. (OK, not really.) Traders have many different words for this particular stock market, none of which are suitable for a family newspaper. If you've checked your balances recently, you may have used some of those terms yourself..."

Retirement Strategies: Protecting Your Assets

A number of readers have requested an increase in the frequency of retirement related entries. The last thing anyone wants as they near the end of their careers is to worry about the safety of their investments and other financial assets. However, in times of economic uncertainty there will always be reason for some level of anxiety. As the costs for everything including food, gasoline, utilities, and health coverage continue to soar, many Americans will be tempted to make up for these increases in everyday expenses by dipping into their retirement funds, but as you might expect borrowing from your 401(k) comes at a steep price. This article from BusinessWeek explores this topic in greater detail and discusses a few alternatives to retirement fund loan.

Safeguard Your Retirement in Hard Times

"Investment losses, job loss or downsizing, an upward adjustment on your adjustable rate mortgage, and higher prices on everything from gas for your car to rice for the table are only some of the current factors that could derail your financial planning for your golden years. When your income is not covering all your expenses, it can be tempting to simply cut out the expense of saving for retirement -- or tap the savings in your 401(k) or IRA to pay the bills..."

Coping With a Bear Market

This has been a trying time for anyone with a significant portion of their net worth tied up in stocks, and stock-heavy mutual funds. In the last month alone, the S&P 500 lost 8.6%, the worst monthly loss since September 2002 when it lost 11%; it was also the worst June for investors since 1930, when it declined almost 17%. By now, most individuals who follow the markets can understand the direct correlation between high oil prices and poor stock performance, and with no indication that the cost of this commodity will come back down to earth, it appears unlikely that stocks will rebound anytime soon. As portfolios continue to suffer, millions of investors are feeling a wide range of emotions, from nervousness, to impatience, to distress; all of which are common in times of severe downturns. However, one can take comfort in the knowledge that a sound investment strategy, specifically, the buy and hold strategy, has a long-term positive expectation; this strategy emphasizes investor passivity, with minimal trading during exceptionally bearish periods. So for investors who are worried that they should taking an active approach to portfolio management, in an attempt to trade their way to gains and erase the year's losses, they should consider the track record of passively managed portfolios, and realize there's a lot to be said for "remaining calm." The personal finance section at CNNMoney has advice for investors of any income level, and offers this piece on how to handle the stress of a difficult investment environment.

Bear Market Guide: Relax, Make Money

"Stocks are down about 20% from their highs, and even the bravest investors might be tempted to cut their losses. Here's why that's not a winning strategy. Worst month for stocks since the Great Depression. A bear market. Oil blows past $140. These are the times that try long-term investors' souls. Consider the response from Ram Ganesh, 31, who started investing in stocks only a year ago. Watching his portfolio rise for most of the year, Ganesh thought he had the market figured out..."

Preventing Identity Theft

Every now and then the nightly news will lead with a story detailing how millions of bank patrons or healthcare provider policyholders had been victimized by criminals who illegally gained access to their private information, including social security numbers, medical history, financial information, etc. Whether the offenders were able to acquire the information through the hacking of a firm's digital database, or something as simple as stealing a laptop, these days almost every American has reason to worry that their confidential information, stored on file, is not adequately protected. Unfortunately, the FBI and other law enforcement agencies readily admit that these crimes are occurring with a greater frequency than in years past, and the methods thieves are using to carry out their crimes are becoming increasingly sophisticated. Yahoo has this article on identity theft describing risky practices that leave individuals vulnerable to having their personal data fall into the wrong hands.

7 Surefire Ways to Become an ID-Theft Victim

"Experience the hassles of being defrauded firsthand! If you love bureaucracy and the thrill of waiting in line to talk to government and bank employees again and again, becoming an identity theft victim might be right for you. Want to be vulnerable to identity theft? When you purchase a new computer, go online naked -- without activating the firewall, or purchasing protective software..."

Does Your Portfolio Need Commodities?

Many financial experts encourage investors to dedicate a certain percentage of their portfolio to commodity-based holdings; Goldman Sachs advocates putting at least 10% of investment capital into commodities. The prices for commodities such as oil, metals, and food products have soared over the past several years, as have the assets of funds that hold them. With more and more investors buying into the idea that owning commodities at this time is a must, and in turn buying into commodity funds, many believe this market has little downside. However, Morningstar director of investment planning Christine Benz argues for taking a contrarian view in this article from the website's personal finance pages .

Adding Commodities to Your Portfolio? Not So Fast

"With growth in emerging markets continuing apace, it's easy to assume that demand for commodities such as oil, metals, and food products will march inexorably higher, too. It's also tempting to want to position your portfolio to benefit from price gains in commodities. If you're going to have to fork over more cash to fill up your gas tank and your kitchen cupboards, why not try to earn back at least some of those extra costs by owning commodities or the companies that sell them?.."

Portfolio Checkup

Almost every American's portfolio has been negatively effected in some way by the current economic struggles; only individuals holding substantial energy positions, or hedging with options, have fared well this year. Investment portfolios have taken substantial hits to their value as a result of several factors; obviously, the domestic and international stock market's downturn played a major role, but also the bursting of the housing bubble that led to REITs enduring massive losses in property value, the dramatic weakening of the dollar, and the poor performance of the bond market brought on by the credit crunch. Therefore, after this extended period of decline, it's important for individuals to analyze the performance of their portfolio's components, as losses to various investments may have significantly thrown allocations out of whack, requiring assets to be rebalanced. Morningstar has this article, which lays out several steps investors can take to ensure their portfolio is "healthy" and poised to maximize returns.

Midyear Portfolio Checkup in Five Steps

"Many of the basic rules of investing are counterintuitive. For example, rising interest rates may be good news for those shopping for certificates of deposit and other short-term savings vehicles, but they're generally bad for bond funds. And here's another zinger: The lazy investor is often more successful than the hard-working one..."

Stock Report: Mid-Year 2008

The first half of 2008 was one of the worst periods on record for investors in recent memory. A number of negatives for the economy; high gas prices, the subprime meltdown, and soaring food costs have contributed to a 12% decline in the stock market since the beginning of the year. For comparison purposes, it should be noted the that global stock benchmark, the Vanguard Total International Stock Index (VGTSX), is down 13.62% as of July 2nd. The average 401(k), with heavy exposure to financial stocks, has been hit especially hard, as banks and other lending firms were left reeling in the wake of the mortgage crisis. Investors fortunate enough to have loaded up on energy and natural resource stocks at the year's onset would have, most likely, balanced out any losses, with both sectors seeing positive returns for the year thus far. With more on how U.S. stocks have fared and some market predictions for the coming months, MarketWatch Personal Finance Editor Jonathan Burton has this report, along with video commentary concerning prospects for energy stocks and other investment opportunities.

Stock Funds Slip in Oil-Slicked Quarter

"The year is only half over, but tortured mutual-fund investors must already be counting the days until they can shred the 2008 calendar the way the unforgiving market has sliced their stock portfolios. The selling waves that socked U.S. stocks in the final days of the second quarter should be the investing equivalent of a 100-year flood, but in fact have occurred with alarming frequency as market volatility has surged in recent years..."

Subprime Mortgage Rate Resets

The Washington Post just released an excellent report concerning the next round of mortgage rate resets, and how this will likely contribute to yet another wave of home foreclosures. CoreLogic, a leading provider of residential mortgage information, estimates that more than three hundred thousand subprime mortgage rates will increase this summer, potentially making a bad situation much worse; although, had the Federal Reserve not made the drastic interest rate cuts that it has over the past several months, these mortgage increases would be substantially more than they will be. Industry monitors believe this period will mark the beginning of a steady decline in the amount of monthly rate adjustments, and predict that the number of resets will be reduced to only a fraction of a percent by the end of 2010.

Also looming on the horizon is a another, similar mortgage mess. Option ARM loans allowed home buyers several mortgage payment options; the most popular being a temporary, interest only payment for the first few years of the contract. These loans had the unfortunate consequence of persuading individuals into believing they could afford a home, when in reality, they were in no financial position to be able to. This issue, being as it has the potential to sink any possible rebound in the housing market for years to come, is also covered in the paper's report, and will be examined further on this site in the near future. The Post has been providing some of the best coverage of the subprime mortgage crisis of any online news service in the country, and will no doubt continue to do so in the coming weeks and months, considering all the legislative proposals being drawn up in Congress to address the crisis.

Resets Peaking on Subprime Loans

"The number of homeowners facing an increase in their subprime adjustable-rate mortgage payments will peak this summer, testing the efforts of lenders and others to keep those people out of foreclosure and stabilize the housing market. The timing reflects the height of subprime lending in the summers of 2005 and 2006, when many borrowers secured loans scheduled to adjust in two or three years. For many, an adjustment means their interest rate will go up two to three percentage points..."

A Bear Market Game Plan

It is rare to be immune to such a sharp economic downturn as the one the country is currently experiencing. Everyone, with the possible exception of the mega-rich, is encountering some level of financial difficulty; be it a lack of money for gas and food, a significant loss of home equity, or a dip in the value of a portfolio. Therefore, it is essential to have a game plan to handle whatever an unpredictable economy can throw your way. When beginning the process of mapping out what course of action to take under various economic scenarios, make note of the extreme highs and lows that stock market participants have witnessed since the Great Depression. Once those figures are accounted for, you'll have a pretty good idea of how severely the market can swing in one direction or another over a short period of time.

After determining what amount of risk you can handle (for example, a 15% dip in the stock market could be considered your breaking point), decide where you want certain financial assets to be transferred to in the event that such a substantial market move occurs. Over the past year, many individuals have taken their money out of stocks, and moved it into bond funds; traditionally viewed as a safer, less volatile investment. However, for some, bonds are not safe enough, and these individuals may want to consider ultra-safe, savings account type investments, with virtually no inherent risk. Although this process may seem like a lot of work, it's actually quite simple; with the help of a computer, along with summaries of various accounts and financial statements, wont take more than a few hours. The personal finance section of the Wall Street Journal explores the 'Game Plan' idea further in this article from its Green Thumb series.

What to Do to Survive This Market

"As stocks flirt with bear-market territory, most investors, long schooled in the buy-and-hold philosophy, have ridden the market down. There's a decent argument to be made for buy and hold. Aside from the absurdity of liquidating an entire equity portfolio -- the tax headaches would be epic -- investors ultimately end up better off than if they had tried to sell at the top and buy at the bottom. "It's hard to time the market, so stay in and benefit from the inevitable turnaround," says David Dreman, chairman of Dreman Value Management..."

Annuities: Income for Life?

Due to the wild fluctuations in the stock market investors have experienced since 2001, there has been significant demand for products that reduce this volatility, but still produce solid returns. The response by financial planners has been to heavily market annuities, in various forms, to their clients. Over the past decade, Americans have poured over $1 trillion of their capital into the annuities market, and experts predict this trend will increase as Baby Boomers seek out more stable investments. Basically, an annuity is a form of insurance contract that guarantees a minimum payment to the purchaser over the course of their life. Depending on contract stipulations and market conditions, the annuity can potentially see an increase in its original payment amount, but will never decrease. As good as the promise of an annuity sounds, however, many worry whether or not the issuing firms can truly make good on their guarantees, as the global financial landscape has changed so much since the start of the decade. SmartMoney has more on this ever-popular financial product with an in-depth article from its personal finance pages.

Variable Annuities Spell Fuzzy Math to Some

"With a successful consulting business and a lifetime of savings under his belt, Russell Schellenberger had always thought he'd be able to retire on his terms. Then the tech bubble popped, and the terrorist attacks of 9/11 prolonged the economic downturn. As he inched closer to his 60th birthday, Schellenberger started to worry. "It turned out world events could ruin you," he says. All he wanted was a little assurance for the future — assurance that he and his wife, Marilyn, would be financially secure..."

Smart Budgeting Practices

The state of the current economy, with its high inflation, stagnant income growth, and troubled housing market, leaves millions with little choice but to develop and adhere to a working budget. Though, at times sticking with the budget can be quite difficult, the financial benefits of doing so can be substantial. Not only can it provide immense help to individuals or families working to grow their savings, but smart budgeting practices can almost guarantee that they will keep their finances from entering the red. Forbes has this article with an explanation on how to construct a budget and advice on how to maintain it.

Budget So You Never Go Broke

"Many of us 9-to-5 newbies may think that monitoring spending is much too onerous and complicated, but budgeting doesn't have to bog you down. Just understanding how and where you spend your money is an essential start. To begin, make two lists: one for what you have to spend your money on each month and one for what you want to spend it on. Making these lists is really the most time-consuming part of starting a budget, but it's worth it..."

The Effect of Foreclosures on Renters

One of the many problems that has come about as a result of the nation's current foreclosure crisis is the significant challenge being posed to those who rent homes and apartment. As the fallout from the mortgage meltdown continues to wreak havoc on the housing market, these individuals are facing considerable difficulties finding and keeping a place to live. Not only are renters encountering competition from families who have recent lost their homes in the wake of a foreclosure, but others are finding themselves forced from their dwelling when their landlord falls victim to a foreclosure. MarketWatch investigates this issue further with a report from its personal finance pages.

Foreclosures Hit Renters Too

"The rise in foreclosures isn't just affecting homeowners, it's also putting pressure on renters, according to a report released Wednesday by the Joint Center for Housing Studies at Harvard University. For one, the uptick in foreclosures is prompting more households to compete for low-cost rentals. Also significant is the number of renters who face sudden eviction when properties they're living in are foreclosed on, the report found..."

Benjiman Graham

Benjamin Graham is considered by many to be the father of financial analysis and value investing. He revolutionized investment philosophy by introducing the concept of security analysis, fundamental analysis and value-investing theories. These are a few of his quotes, along with a quote about Graham, by his student and disciple Warren Buffet, the world famous investor.

"The individual investor should act consistently as an investor and not as a speculator. This means.. that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase."

"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed."

-Benjamin Graham (1894-1976)

"It is rare that the founder of a discipline does not find his work eclipsed in rather short order by successors. But for over forty years after publication of the book ["Security Analysis"] that brought structure and logic to a disorderly and confused activity, it is difficult to think of possible candidates for even the runner-up position in the field of security analysis." (Warren Buffet, Financial Analyst Journal, November/December 1976)

A State by State Economic Comparison

The ABC News Money page has a new interactive feature that allows users to get a detailed look at the economy of all 50 states. What you will see at first is a yellow map, and by navigating over a specific state and clicking on it you're given a quick summary of fundamental statewide economic data including median incomes, unemployment and foreclosure rates, the state's top employers, and more. In addition, users are given the option to read a detailed statewide economic analysis that includes information regarding how industries within the state are being effected by the current economic crisis. Entitled The Backyard Economy, this feature is sure to provide valuable insight for anyone curious as to how the financial situation in their own state compares to states in various geographic locations. It may also help many to draw some conclusions concerning the role the state government has played in creating the current economic environment based on similar data from neighboring states.

Your Money: The Backyard Economy

"Some states prosper. Others suffer. How is your home state's economy doing?.."

Debt Consolidation Dangers

Debt Consolidation offers are popping up everywhere; on TV, on the radio, on websites, etc. With the record levels of credit card balances, and mortgage troubles, debt consolidators are doing a fantastic business, with a seemingly endless market of potential costumers whose numbers grow by the day. However, individuals consolidating their debt could be surprised to find out just how costly the process can be. It might be the case that entering into a consolidation agreement can be so expensive that it leaves the party worse off financially than they were before they began the process. Yahoo personal finance provides yet another fantastic Bankrate article which examines this topic in greater detail.

The Dangers of Debt Consolidation

"Debt and debt-consolidation strategies go together in the American economy like peanut butter and jelly. You don't need a financial planner to comprehend the basic logic: Combining multiple payments into a single monthly check lowers interest rates and can positively affect your credit score. "It's easier to take on the 1,000-pound gorilla who comes to the front door as opposed to 20 50-pound gorillas pouring in through separate doors and windows..."

Certificates of Deposit (CD) Returns

Many Americans are seeking safer and less volatile ways to grow their capital, as the stock market continues to experience significant swings. One of these options is the Certificate of Deposit, CD for short; a time based financial product issued by banks and credit unions. CDs are different from savings accounts in that the CD has a fixed interest rate, as well as a specific, fixed term ranging from three to six months, or one to five years. CDs are to be held until maturity, at which time the original deposit, along with accrued interest, may be withdrawn. In most cases, banks offer higher interest rates on CDs than they will for standard savings accounts in exchange for keeping the money on deposit for the agreed upon term. Over the years, various types of CDs have been offered, with the majority of these carrying a higher level of risk, but a higher yield in return. This article from the personal finance pages of USAToday provides a summary of the world of CDs.

Some Safe Picks for CD Returns

"When President Franklin Roosevelt signed the Banking Act of 1933, he had one goal in mind: restoring confidence in the nation's banking system. Since then, no saver has lost a dime in federally insured deposits. But much has changed in the past 75 years. You can withdraw cash, check your account balance and transfer funds between accounts without ever stepping inside an actual bank. And the types of accounts eligible for deposit insurance have grown increasingly complex..."

Layoffs: The Financial Consequences

Layoffs are being reported on the news just about everyday it seems, especially in the finance sector where firms are still reeling from the fallout of the subprime meltdown. Just yesterday one of the biggest banks in the world, Citigroup, announced it will be cutting 10% of its workforce. For individuals who have recently been handed a pink slip, or for those who feel their job is in jeopardy, it is important to be well informed on how to handle the financial consequences of a layoff. Smart Money personal finance columnist Lisa Scherzer has several pieces of advice for workers who now find themselves faced with this challenge.

Laid Off? Here's How to Stay Afloat

"Cassandras predicted earlier this year, the ranks of the unemployed are on the rise. Even worse: The damage is no longer confined to home builders and real-estate outfits. Now, workers in industries across the board — from financial services to pharmaceuticals — are feeling the pain. Last month, the Labor Department reported that the jobless rate hit 5.5% — the highest level reported since October 2004..."

Stock Recommendations

When it comes to the economy, Americans have several reasons to be concerned; the soaring costs of food, gasoline, and health coverage are putting tremendous pressure on the finances of the average consumer. Therefore, many are looking to their investments to provide substantial returns, as a way to offset these increased costs and hedge against rising inflation, or stagflation as many economists would describe it. In other words, if John Smith will be spending an extra $2,500 this year because of a dramatic increase in the cost of goods and services, he will hope that by the end of the year the value of his portfolio increased by at least $2,500, after taxes, in addition to this portfolio's normal rate of return. CNN Money has this report on five stocks they believe are poised to outperform the market in the second half of the year.

Stocks We Love: 5 Big Earners

"With the second quarter drawing to a close, a wave of earnings reports will again soon be upon us. And with the U.S. economy reeling from an economic slowdown, the results are expected to be nasty. According to Thomson / First Call, corporate earnings are forecast to fall 9% year-over year for the quarter. Though that's better than the 17.5% drop in the first quarter, estimates for the current quarter have continually been revised downwards by analysts..."

Coping with Stagflation with Passive Investing

If the stock market were to trade sideways for the next 10 years, due to a multi-phase recession as some economists have predicted, what would be the best way to cope with such a poor investing environment? The answer, based on the track record of a number of well-known portfolios, may be the use of a passive investment strategy. MarketWatch personal finance columnist Paul Farrell makes an argument that, over the course of the next decade, this may be the correct way to proceed for millions of Americans in search of ways to avoid significant equity losses as the economy deteriorates.

'Lazy Portfolios' for Stagflation 2008-2018!

"Stagflation till 2018? I can hear you screaming: "Ten years of no growth? Plus inflation? Plus high volatility in a narrow trading range?" You're crazy! Well, I was at Morgan Stanley during the 1970s, looked at billions of dollars of depressed real estate for clients. Stagflation lasted into the '80s, over 10 years. Painful stuff. On top of all this, in several recent columns we've reported on a bigger bubble blowing and a meltdown coming by 2011. Folks, the era of happy-days and happy-talk is over!.."

Foreclosure Legislation

There is sure to be major national legislation in the coming months to assist the growing number of families who are facing the prospect of a home foreclosure, as well as those who have now lost their homes. Most if not all states are now in the process of proposing new laws to fix specific foreclosure rules, but New York has moved faster than most in coming to an agreement on a bill that would substantially alter how foreclosure proceedings are carried out. Lawmakers in Albany have created a new set of guidelines that could serve as a model for other states currently debating similar fixes; the most notable among these changes include forcing lenders to give homeowners at least three months notice prior to a foreclosure proceeding being initiated and to provide a list of housing counselors. In addition to the state proposals, New York's Chief Judge is calling for a program designed to make the entire process less burdensome. The New York Times is covering both of these stories, and will certainly have more reports on the matter in the days and weeks to come.

A Proposal From Albany on Stemming Foreclosures

"Governor David A. Paterson and leaders of the State Legislature announced on Thursday an agreement to overhaul state foreclosure laws, one of the few major deals that has emerged in the final days of the legislative session. Under the proposed legislation, which is still in progress..."

Court Offers Homeowners Help Avoiding Foreclosure

"Homeowners in New York who face foreclosures would be offered help by the courts to save their homes or at least make the overall process easier under a new program announced on Wednesday by the state’s chief judge. The program calls for the creation of a new section of the court charged with helping borrowers and lenders reach speedy settlements..."

Paying Down Debt

Yesterday's entry focused on the many aspects of one's life that can be adversely effected by a ruined credit score. Despite what many may believe, all is not lost; to overcome the challenge of a damaged credit history, there are many options individuals have at their disposal, first and foremost being a repayment program. Anyone can find, with a simple web search, countless stories of people who had lost all forms of credit because of financial troubles such as credit card or mortgage defaults, but they were eventually able to rebuild their standing with banks over the years through financial planning and counseling, as well as disciplined saving. This follow-up feature from CNBC takes a look at a process that those who are dealing with this specific problem can use to turn their finances around and rebuild their credit.

6-Step Debt-Elimination Program

"Is debt overwhelming your finances? If you have nightmarish visions of being surrounded by creditors, it's time to put down all credit cards, tighten the proverbial belt and start living not only within your means, but under them until you've paid back what you owe. Take control of your debt and commit to the following strategies so you can start using credit to get ahead, rather than always playing catch-up..."

The Debt Ripple Effect

As everyone knows, the nation is facing a serious debt crisis. More money than ever, close to a trillion dollars in fact, was owed to credit card companies at the end of 2007. Twenty percent of households are making late payments or over their credit limits, and as inflation soars those that number is sure to rise. Millions of Americans finding themselves in trouble with their credit situation are going to incur long-lasting and damaging effects to many aspects of their lives as a result. Not only can a ruined credit history produce stress and other related emotional issues, but also lessen one's chances of landing a job or an apartment. This article from the personal finance section of CNBC examines the impact credit problems can have on everything from relationships and peace of mind, to opportunity cost and spending power, along with insights from finance and credit experts.

Tallying the True Costs of Debt

"The financial side is easy to quantify, and the numbers are huge. Americans are drowning in debt, carrying a record $972.5 billion in revolving charges at the end of 2007, according to data from the Federal Reserve. "The average household has $11,000 to $12,000 in credit card debt," says Christopher Viale, president and chief executive officer of Cambridge Credit Counseling Corp. Those figures are diluted by those who don't hold any debt, he adds. Households that carry debt from month to month carry close to $17,000 of unsecured debt on average, he says..."