Boomerang Kids: 85% Of College Grads Move Home

According to new statistics, there is a new group of kids in town: the boomerangers. They are college graduates who move back home because of extreme unemployment rates among their age group. Nearly 15% of taxpayers between the age of twenty and twenty-four are unable to find employment. According to CNN Money:

"This recession has hit young adults particularly hard," according to Rich Morin, senior editor at the Pew Research Center in DC.

So hard that a whopping 85% of college seniors planned to move back home with their parents after graduation last May, according to a poll by Twentysomething Inc., a marketing and research firm based in Philadelphia. That rate has steadily risen from 67% in 2006.

"It's peaking at levels we have not seen before," said David Morrison, managing director and founder of Twentysomething.

Mallory Jaroski, 22 graduated from Penn State University in May but has been living at home with her mother while looking for a job in press relations. "It's not bad living with my mom, but I feel like a little kid. I have a little bed, a little room," she says.

Jaroski thought she would stay for summer. But like many others, she's found her stay becoming significantly longer.

"There's almost an expectation that kids will move back home, there is no stigma attached," Morrison said. "The thought now is to move home for 6-12 months but in reality those young adults will be home for a year and a half or longer. Even if they have jobs, they are living at home."

Continue Reading…

More Families, Friends Move In Together

From 2005 to 2009, American families took about 3.8 million extended family members in to their home to live with them. Due to financial strain, more and more households now have multiple siblings or family members living under one roof. New census data found that extended relatives now make up 8.2% of family households, up from 6.9% in 2005.

USA Today reports

Fueled by the dismal economy and high unemployment, more Americans — friends and families — are doubling up.

From 2005 to 2009, family households added about 3.8 million extended family members, from adult siblings and in-laws to cousins and nephews. Extended family members now make up 8.2% of family households, up from 6.9% in 2005, according to Census data out this week.

"Clearly, a big part of that is the economic recession and housing costs," says Stephanie Coontz, co-chair of the Council on Contemporary Families, a non-profit research association. "We're seeing a shift away from the 1950s and 1960s mentality against extended families," when "modern" women did not take in aging parents for fear of hurting their marriage.

There are also signs of a shift from family households. For the first time in more than a century, more than half of people aged 25 to 34 have never been married.

The number of people in non-family households — those whose members are not related — grew 4.4% from 2005 to 2009, faster than the 3.4% growth for family households.

"It's a realistic recognition that while a good, healthy nuclear family is a valuable thing to have, it's not the only family form people are going to live in all their lives," Coontz says.

Read more here

Analyst Who Called Recession End Sees Durable Rebound

Economist Thomas Lam accurately predicted the official end of the recession a year and a half ago, and now he is offering his opinion on economic recovery. He predicts that we will see the economy rebound, with less than a 20% chance of a renewed slump.

Bloomberg.com reports:

“The main risk to the U.S. economy today is really a prolonged period of mild growth rather than an imminent recession,” said Lam, the Singapore-based chief economist at OSK-DMG, a joint venture between Malaysian securities firm OSK Holdings Bhd. and Frankfurt-based Deutsche Bank AG.

Lam’s May 2009 call that the U.S. would emerge from recession the following month -- confirmed this week by the National Bureau of Economic Research -- drew “quite a bit of heat because it was a time when things were still uncertain,” the 35-year-old analyst said in a telephone interview with Bloomberg News today. “Some thought the call too optimistic.”

Lam, who published his prediction while working for his previous employer, United Overseas Bank Ltd., studied peaks in the number of U.S. jobless claims using a proprietary weighted- average formula to remove statistical “noise,” and found a correlation with economic turning points.

“The model actually predicted it would be 394 weeks from the prior trough in November 2001” before the economy would begin growing again, Lam said. “It was actually 395 weeks.”

Read more here

‘Great Recession’ Over, Research Group Says

If you have not heard yet, according to the National Bureau of Economic Research (NBER), the great recession is officially over. This news may come as a surprise to the millions of Americans that are still struggling financially. Check out the following story from MSNBC.com on this new announcement.

NBER said Monday that the recession which began in December 2007 ended in June 2009, which marked the beginning of an expansion. The announcement rules out the possibility of a so-called “double-dip” recession, because any new downturn would be seen as a brand new recession.

President Barack Obama said that even though the NBER officially named an end to the recession, the economy has a long way to go and much work to be done to become healthy again. "Something that took ten years to create is going to take a little more time to solve," Obama said at a town-hall-style meeting shown live on CNBC.

The NBER said it chose the June 2009 date based on examination of data including gross domestic product, employment and personal income.

"The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months," the NBER added in a press release on its website.

Continue reading at MSNBC.com…

Bankrupt, USA: Why Our Cities Aren't Too Big to Fail

Although President Obama and Congress have assured taxpayers that financial giants will no longer receive bailouts, many economists are worrying that local governments may be in need of federal funds. Cities across the country, including Harrisburg PA, Central Falls RI are facing serious financial troubles.

According to CNN Money, Harrisburg’s city government was scheduled to default on a $3.3 million bond payment. Fortunately Pennsylvania's governor, Ed Rendell, pledged $4.4 million in state funds to help the struggling city.

This gives Harrisburg a chance to fight again another day. But its problems are far from over, and that's bad news for investors in the $2.8 trillion muni-bond market.

States from California to Illinois have been in deep crisis since the recession began, hammered by drastic cuts in tax revenue and inflexible spending demands for things like health care, debt service and pension plans. Forty-eight states grappled with fiscal shortfalls in their 2010 fiscal budgets. Totaling $200 billion, or 30% of state budgets, this fiscal shortfall is the largest gap on record, according to the DC-based Center on Budget and Policy Priorities, which sees at least 46 states facing shortfalls this fiscal year.

Some cities are in even worse shape than Harrisburg. Central Falls, Rhode Island, recently went into receivership when it couldn't pay its bills. San Diego is said to be considering bankruptcy to get out from under its pension obligations. Miami's city council, hoping to avoid Harrisburg's fate, recently used emergency powers to slash city salaries and pensions and is now instituting hefty traffic fines and garbage fees. This year, ratings agencies have cut the debt in several cities -- including Littlefield, Tex., Detroit, Mich. and Bell, Calif. -- to junk.

Continue reading at CNN.com…

5 Signs the Economy is still Struggling

With the November elections just a few weeks away, some politicians want Americans to believe that the U.S. economy is recovering. However, according to a report from Rutgers University, over half of American taxpayers believe the economy has undergone a fundamental and lasting change. Yesterday, I posted this blog entry taking a look at some of the signs of economic recovery, however, not all signs are good. There are also plenty of reasons to still be concerned about the economy.

Auto Sales

We all know that the three main American automakers have been struggling for years. Despite federal funds, the companies are having ongoing problems. Some economists estimate that U.S. automakers must charge an additional $2,000 per vehicle because of labor costs, and high medical and retirement benefit expenses. With this additional overhead, it has become almost impossible for American automakers to stay competitive. Compared with August of 2009, auto sales have decreased by 21% over the past year, and between July and August of 2010, sales fell by 5%. These disappointing numbers have led many economists to call for another Cash-for-Clunkers program, or another type of financial incentive to purchase a new car.

Unemployment

It is impossible to ignore unemployment problem in this country, with thousands of jobs being lost every month. According to the Labor Department the economy lost 100,000 jobs in August, which increased the unemployment rate from 9.5% to 9.6%. The ongoing unemployment problems are commonly cited as the main delay in economic recovery, and although we might see seasonal job creation over the next few months, many experts predict that we will not see any significant employment gains until 2012.

Home sales

Earlier in the year the housing market was showing some signs of improvement, but after the housing credit expired in June, home sales decreased quickly. In July, home sales were down over 25% compared with July of 2009. To make matters worse, home values are also continuing to plummet. Experts are even predicting another 5 to 10% decline in house prices over the next few months. Fortunately, as Neil Irwin or the Washington Post explains, housing activity has already decreased so much that it would be hard for it to hurt future economic recovery. Between 2006 and 2009 home sales fell from 2.3 million annually to under 500,000. This sudden drop was a major strain on the economy, but even if construction levels decrease further it is very unlikely to have the same impact on our economy as the collapse between 2006 and 2009.

Local Double Dips

One of the largest fears about the U.S. economy is the possibility of a double-dip recession. Most economists agree that this is unlikely on the national level. However, many state and local governments are at a serious risk of slipping into a second, more severe recession. Several government agencies across the country are facing unbalanced budgets, and have turned to drastic tax increases to generate revenue. Many economists suggest that these tax hikes could have a negative impact as consumers are left with less money to spend in their local economy.

Bank Failures

Last month the Federal Deposit Insurance Corporation (FDIC) announced that 829 financial institutions (or 1/10th of the banks in this country) were on their problem list. These banks are on the edge of going under, and there have already been 118 bank failures this year. There were 140 total bank failures in 2009, and it does not look like this trend is going to stop anytime soon. The problems facing financial institutions in the U.S. has a significant impact on the overall economy. When banks are struggling lending becomes more difficult, between April and June loan and lease balances fell another 1.3%. Until businesses have easier access to credit, unemployment problems will persist and the economy will continue to struggle.

Greenspan Says Decline in U.S. Home Prices Might Bring Return of Recession

Over the weekend former Federal Reserve Chairman Alan Greenspan was on NBC’s “Meet the Press,” to discuss the economy and housing market. He asserted that the slowing recovery felt like a “quasi-recession” and that the economy might have more problems if home prices decline.

Slowing economic growth, and a decline in housing activity following the expiration of a government tax credit, have raised fears that the economy could return to a recession before completing its recovery from the worst downturn since the 1930s.

The former U.S. central bank chairman said that most economists expect “a small dip” in home prices. The National Association of Realtors reported that the pace of home sales fell in June for a second month. Homes are selling at an annual rate of 5.37 million, and the group’s chief economist Lawrence Yun said transactions will be “very low” in coming months.

“If home prices stay stable, then I think we will skirt the worst of the housing problem,” Greenspan said. “But right under this current price level, mainly 5, 7 or 8 percent below, is a very large block of mortgages, which are under water, so to speak, or could be under water. And that would induce a major increase in foreclosures, foreclosures would feed on the weakness in prices, and it would create a problem.”

Continue reading at Bloomberg.com…

Stupid things people do in the hope of saving money

In this economy, everyone is looking for ways to save money. Unfortunately, some ways to save are not always the wisest. WalletPop.com’s Sarah Gilbert shares 9 not-so-smart things people do trying to save a buck. Here are a few of my favorites:

Membership – paying a fee for the privilege of saving money rarely works in your favor. More often than not, we end up spending more “to get our money’s worth” when all we are doing is buying unnecessary things.

Free Shipping – When you shop online, many retailers give you free shipping if you spend more than $50. So, what do we do? We find something we want to buy, and then go looking for MORE things to buy just to avoid shipping costs. Wouldn’t it make sense to just buy the product at your local store the next time you’re out and avoid the shipping altogether?

Buy One Get One Free – Oh, we do love to get something for free. But this is the oldest retail trick in the book. You take an item that isn’t selling – even in quantities of one – and make it a Buy One Get One Free deal. So, instead of having one item you probably would never buy, you have two of them.

I know we’ve all been guilty of these missteps, but let this article remind you that the real way to save money is simply to stop spending it.
Find more financial missteps here.

Could We Be Entering a Third Depression?

At the recent G20 Summit meeting in Toronto, governments pledged to halve their deficits by 2013. According to the Huffington Post, Nobel Prize winning economist Paul Krugman believes this move will plunge us into a “third depression.” Krugman states:

“We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost -- to the world economy and, above all, to the millions of lives blighted by the absence of jobs -- will nonetheless be immense.”

Krugman believes that our skyrocketing number of long-term unemployed workers combined with government budget slashing will lead us into a long-term depression that may not be as severe as the Great Depression, could last years. And Krugman isn’t alone. The Wall Street Journal has reported that the Federal Reserve members are preparing for a potential “double-dip” recession in the US, as is Market Watch’s in-house economist.

What do you think? Are we on the verge of recovery, or on the verge of a long-term depression? Tell me your impressions via Facebook or @ronideutch/Twitter.

Read the Full article here.

Government Revises GDP Estimate Down to 2.7% For 1Q

The Government lowered their original first quarter estimates regarding the Gross Domestic Product, due to a an underestimate of consumer spending. Even though the estimate is lower, it does mark the third consecutive quarter of growth. Check out the following story about the adjustment courtesy of USA Today:

Gross domestic product rose at a 2.7% annual rate in the January-to-March period, the Commerce Department said Friday. That was less than the 3% estimate for the quarter that the government released last month. It was also much slower than the 5.6% pace in the previous quarter.

GDP measures the value of all goods and services produced in the United States and is considered the best measure of the country's economic health.

The economy has now grown for three consecutive quarters after shrinking for four straight during the recession — the longest contraction since World War II.

In normal times, 2.7% growth would be considered healthy. But it's relatively weak for a recovery after a steep recession. After the last sharp downturn in the early 1980s, GDP grew at annual rates of 7% to 9% for five straight quarters.

Continue reading at USA Today.com…

Double dip recession: What are the odds?

Have you been hearing the term “double dip recession” lately? Do you know what it means? It refers to a recession followed by a short-lived recovery that then slides back into a second recession. That said, do you think we are in for one? With a plunging stock market as I write this due to the Gulf oil spill and unemployment at an all time high, it’s not difficult to imagine. In an article on CNN.com, it is explained that a chance for a double dip can be measured by fluctuations in gross domestic product, or GDP, one of the broadest measures of economic activity. They explain that GDP would have to go into negative numbers again for us to fall into a double dip recession. Although growth might not be as high as the GDP growth in 2009, it’s not likely it will turn negative again. David Wyss, chief economist with Standard & Poor’s said the odds have shrunk to a 20% chance. I’ll bet on those odds.

Read the full article here.

Bernanke Says the Federal Debt Is ‘Unsustainable’

The chairman of the Federal Reserve, Ben S. Bernanke, offered little comfort to Democrats or Republicans on policy recommendations, the New York Times is reporting. Mr. Bernanke warned everyone on Wednesday that “the federal budget appears to be on an unsustainable path.” He did, however, recognize that the “exceptional increase” in the deficit had been necessary to ease the recession. Mr. Bernanke also was quoted in the New York Times as saying, that he felt "increased taxes, cuts in spending that are too large, would be a negative, a drag on recovery."

Basically, Mr. Bernanke was telling the House Budget Committee so that everyone will understand they need to formulate a plan. He confirmed on Monday in a question –and –answer broadcast that, he, like Congress, was waiting for the outcome of a bipartisan fiscal commission appointed by President Obama before making policy recommendations.

Read the full article here.

10 Reasons to Buy a Home in Spite of the Expired Federal Credit

The ongoing foreclosure crisis in this country is enough to make any potential homebuyer nervous. What’s more is that the deadline for the federal tax credit has passed for most taxpayers, and Congress has showed little interest in extending the credit. However, there are still plenty of other great reasons to purchase a home in 2010.

1. Recession Prices

While the market has had some recent hikes in sales – mostly because of the expiring credit and increased action by real estate investors – the total number of homes for sale still outweighs the number of potential buyers. Therefore, home prices are still at their rock bottom, “recession” level prices. However, as real estate sales continue to increase—home values and prices, are likely to rebound.

2. Local Credits

While the federal homebuyers tax credit has expired, dozens of states and local government agencies are offering significant incentives to purchase a home. Despite their economic struggle, California just reinstated a tax credit for homes bought in the state. The program was so popular last year that it ran out of funding in only four months. However, the $200 million put towards the program, which began May 1st, will provide residents up to $10,000 in tax incentives to buy a house.

3. Exceptions to the Rule

While for most of us, the federal credit is no longer an option, there are a few exceptions to the rule. If you are a member of the armed forces or federal employee who was serving outside the U.S during the past year, you may qualify for a one-year extension to claim the credit. Eligible taxpayers will need to enter in to a binding contract on or by April 30, 2011, and close escrow by June 30, 2011.

4. Green Homes

If you intend to make energy efficient upgrades to the home you purchase, you may be able to qualify for a handful of “green” tax credits. There are significant incentives to add solar panels to your home, as well as lesser credits to install energy saving appliances, windows, and heating/cooling systems.

5. Renovation Costs

In addition to making green upgrades, if you plan to make any renovations to a house you are buying then now is the time to do it. The unemployment rates among contractors are at an all time high and you should be able to keep your labor costs low. Additionally, prices for common remodel materials such as granite counters, tiles, carpet, etc. have all gone down over the past few years.

6. Safer Loans

After the major bank bailout occurred, it became clear to everyone that some financial reform was necessary to protect both our economy and American taxpayers. Among the many changes that have occurred, banks have become somewhat tighter on their qualification requirements, making it hard to get approved for a loan that you might not be able to afford.

7. Mortgage Deductions

When you think about the annual expense associated with buying a home, be sure to remember that there are a handful of very valuable mortgage deductions. The IRS will allow you to deduct all interest paid towards your mortgage on your tax return, as long as it is less than $1 million. This can significantly lower your tax bill, and you may even be able to adjust your withholdings to get some of this money throughout the year.

8. Real Estate Taxes

In addition to deducting mortgage interest, you can also deduct any property taxes that you pay your local government agency. Although most homeowners itemize their returns, you can take advantage of the property tax deduction even if you take the standard deduction.

9. Entrepreneurs

If you are thinking about starting a business, then working from home can be a great way to start small while also take advantage of the valuable home office deduction. However, keep in mind that the IRS is strict about claiming deductions for a home office, so be sure to check with a local tax professional before taking the deduction.

10. Investment Opportunity

If you have a secure job, and are looking for an investment opportunity you can control, then you should consider real estate. As I explained earlier, property prices are at an all time low and if you can afford to buy a home, you should see its value increase over the next few years.

How Do You Keep Them Coming Back?

Right now a lot of small businesses are struggling to keep their customers. It’s tough out there, whether you run a retail business or a service business. In a New York Times article How Do You Keep Them Coming Back the author explains, “One of the most important aspects of retail marketing is to get the customer to think, ‘I love it here. I want to be here. I belong here.’ You want customers to take ownership of the store, which essentially means ownership of the brand.”

I couldn’t agree more. That’s exactly what our franchise owners of the Roni Deutch Tax Centers try to create—a brand experience. They work to create a unique “feel” when you walk into a Roni Deutch Tax Center; one that the customer will remember.

In order to get people coming back you need to make them feel special; treat people like V.I.P. The article points out some good examples of the ways a couple of stores created a “home” for customers, and a reason to come back. As the author puts it, “When you make people feel comfortable and at home, they will reward you with repeat business.”

Read the full article here for some inspirational ideas to keep your customers returning.

Study: Shaken-Baby Cases Rose During the Recession

Time magazine reported that since the start of the current recession there has been a significant increase in cases of shaken baby syndrome, in which young children are shaken violently by an adult. This topic hits close to home for me, so I’d like to take a moment to bring awareness to this real and devastating form of child abuse. Researchers, led by child abuse expert Dr. Rachel Berger at Children’s Hospital of Pittsburg, analyzed 512 cases of head trauma in the children’s centers of four hospitals (in Pittsburgh, Pa.; Cincinnati, Ohio; Columbus, Ohio; and Seattle). They found that the number of cases had increased from 6 per month to 9.3 per month as of Dec. 1, 2007, a rate that had held steady since 2004.

"This is a perfect storm in a bad way, where we have economic stressors that are causing the removal of social-service resources for preventing and addressing child abuse," says Berger. Dr. Berger cautions that her study highlights an association, not a cause-and-effect relationship, between the recession and the incidence of shaken babies. But findings such as these are a stark reminder that many stressful circumstances—family tragedy, natural disaster or financial problems may push parents or caretakers to the limits of their coping abilities.

Berger says the findings also serve to highlight the risks of cutting back on social services provided by cities when economic times get tough; these services can educate parents and provide resources to help them cope with the stress, preventing child abuse from occurring.

Please read more about Shaken Baby Syndrome at The Hannah Rose Foundation website, www.dontshakeyourbaby.com.

Read more of the Time article here.

What a Recession Means for Your Business

I know many small business owners are feeling the effects of the recession. Business is most likely slow or perhaps even non-existent. It’s difficult, but I want to congratulate you for doing what it takes to own your own business in the first place and for taking the risk of capturing your piece of the American Dream. Here are a few ways the recession may be affecting your business and some measures you can take right now to help keep your business afloat.

Maybe your sales are down, and once that happens, then it doesn’t take long for profits follow. Well, one way to stay afloat is to lower your profits in an attempt to achieve higher sales figures. The other way would be to spend more on marketing and advertising while keeping your profit margins. Yes, your profit figures will lower, however, you would be increasing your presence in the market which could make you the first to reap the benefits as soon as the economy emerges from the recession.

So just because you need to cut expenses, cutting marketing would be the worst idea. Have you tried marketing within social media websites? Many sites that allow you to post status updates such as Facebook, Twitter, LinkedIn and Myspace are free way to advertise! Create a Fan Page for your business within Facebook and let people know what you do. You only need to spend a few minutes a day updating your status, inviting people to “fan” you or perhaps offer a coupon for followers. Go to business chamber events or other networking events to find more people to “follow” you. By meeting people and gaining their friendship and trust, they will know who to call when someone is looking for your type of business.

Your monthly expenses are probably increasing when a recession accompanies high inflation. This could eat into your savings and you may start to face financial problems.
Avoid unnecessary expenses and attend only to those expenses related to your business, evaluating them on a priority basis.

More business advice, some adapted from Business Recession: What a Recession Means for Your Small Business, an article on MoreBusniess.com:

Learn to rotate your inventory faster so your profits can increase instead of maintaining a large inventory. Use the latest technology available to keep track of your inventory. Dispose of all your slow moving products through “fire sales” if necessary. A fire sale is the sale of goods at extremely discounted prices, typically when the seller faces bankruptcy or other impending distress.

Get familiar with “Just in Time” methods to maintain your stock and delivery schedules. And last, but not least, don’t make the mistake of assuming demand for everything in a recession goes down. Maybe you have to switch a product out for one this is selling now.

The First Small Business Loan Of The Year Goes To ....

Earlier today a coworker sent me this link to an article on CNN Money, that offers a unique perspective of small business lending in the U.S. CNN worked with the small business association to identify the first SBA loan that was awarded this year. The loan went to the owner of Lawlor’s, a sportswear store in Omaha, and you can read about this interesting story below.

To kick off the new year, we asked the Small Business Administration to find us the first business to receive funding this year through an SBA loan. The agency came back with Lawlor's Custom Sportswear in Omaha, which had its loan application approved Jan. 7 and received a $100,000 check from its bank, Security National Bank of Omaha, on Jan. 19.

When an opportunity arose in November to rent prime real estate in a popular area shopping mall, Pat Lawlor knew it wasn't exactly the best time to expand his modest chain of sports apparel retail stores.

Revenues for Lawlor's Custom Sportswear, which has 28 employees in four locations in and around Omaha, were on track to be down 10% for the year. Plus, the company was already trying to pay off substantial debt.

"I'd be lying if I said that it wasn't a bad year," Lawlor said.

Continue reading at CNN Money.com…

7 Companies That Won't Make It to 2020

Everyone knows that small businesses are struggling in the current economy, however big businesses are also being affected by the recession. Over the past year a handful of large store chains have been forced to shut down including Linens 'n Things, and Circuit City.

According to this article on MSN, the problems facing these big brands are not likely to end any time soon. They have put together an interesting article explaining the 7 companies that are likely to fold before the year 2020. Included in their list are a couple of immensely popular businesses such as Sears, Blockbuster, and Borders Books. I have included a few of the companies mentioned in the article below, but you can find the full list and accompanying explanations at MSN Money.

1. Palm

With the Treo, Palm was an early pioneer of the move to smart phones. So it doesn't seem right that stronger competitors such as Apple and Research In Motion (aka Blackberry) are now going to crush it. But that seems to be Palm's fate.

2. Sears

Sears remains one of the great mysteries in retail: It's not clear why it still exists. Yes, we know consumers love Craftsman tools, DieHard batteries and Kenmore appliances. But there's a fuddy-duddy aspect to its stores that makes it a wonder Sears has survived the current decade. Even to aging baby boomers, it's the place Grandma shopped.

Yes, Eddie Lampert, the chairman of the hedge fund that owns a controlling stake in the retailer, is a purported financial genius. But Sears and Kmart -- the other retailing dinosaur inside Sears Holdings -- haven't done much to impress investors or consumers since Lampert took charge in 2005.

3. Blockbuster

Video rental icon Blockbuster is a great example of how technological change can crush winners that fail to keep up. First Blockbuster got hammered as video rentals began moving to mail distribution pioneered by Netflix.

Now video distribution is shifting to the Internet, and Blockbuster is lagging again. "The amount of content you can download directly will make Blockbuster obsolete," predicts Strata Capital's Stevens.

How to Have a Recession Friendly Halloween

The bad economy has all of us pinching our pennies a little tighter this year. However, the recession does not need to ruin your holidays. With some advanced planning and preparation, you can easily have a recession friendly Halloween.

General Tips

Keep your Spirits Up!

Do not let the idea of having to stick to a budget ruin your Halloween. As you will see from the rest of this article, there are plenty of ways to save money without sacrificing anything.

Embrace Halloween Crafts

There are plenty of ways to make decorations and costumes on a limited budget. Just stop by your local craft store and check out their Halloween section. If you have children, you can always enlist their help and make the task a family project!

Shop Specials and Discounts

Lots of stores run special discounts on Halloween merchandise and costumes this week. Pick up a local newspaper to browse the ads and take advantage of any sales you can find.

Decorations for Under $5

Turning your home into a haunted house does not need to break the bank. Check out the following ways you can create festive decorations for just a few dollars.

Graveyard Fog

You do not need to purchase an expensive fog machine to give the illusion of a haunted graveyard. You can pick up some dry ice from a local grocery store for a couple of bucks, and place it in a bucket with some warm water.

Tombstones

It only takes a few minutes to make a few spooky tombstones to decorate your house. Cut pieces of cardboard then paint them with grey and black. You can then write personalized messages on the tombstones such as “R.I.P” followed by the name of a friend or family member.

Ghosts

Making your own ghosts is actually pretty easy. Take either a foam ball or a balloon and wrap it with white cloth. You can then hang them by fishing line all over your house for a spooky effect.

Spider Webs

You can buy bags of spider web from your local 99-cent, or dollar tree store that will go a long way towards making your home look spooky and mysterious. You can also enhance the effect of the cobwebs by placing strings of black lights behind them.

Saving Money on a Halloween Party

The costs of hosting a Halloween party can add up quick, but you can save easily keep from breaking the budget by following these tips.

Dead Punch

Make a bowl of "dead punch" by mixing a batch of regular fruit punch, with floating ice cube hands in it. To make these frozen hands simply fill a few plastic gloves with water, tie off the ends, and place them in the freezer. Then, remove the ice cube hands and place them in your punch just before guests arrive.

Terrifying Table Settings

You can make beautiful centerpieces for next to nothing by filling some glass vases with fall leaves, or gauze and fake spiders for a scarier effect. If you are hosting a dinner party you could cut down on costs by making your own place cards and table decorations.

Pumpkin Potluck

Every one loves carving pumpkins for Halloween, so why not just host a pumpkin carving potluck? By having guests bring a dish you can save on food, and by carving pumpkins you can save on entertainment expenses.

Crafty Costumes Ideas

It is easy to get caught up in the Halloween fun and drop major cash at the Halloween costume shop. However, making your own costume can be both cheaper and more fun and original than buying a generic costume from the store.

H1N1

You can easily dress as the H1N1 virus – or Swine Flu – by throwing on some doctors scrubs and putting on a pig nose, or just wearing a pig nose and carrying around a tissue box. You could even “quarantine” yourself by wrapping a few pieces of caution tape around your arms or waist.

Bunch of Grapes

You can make a quick and easy costume with just a green shirt and a bag of purple balloons. Just blow up enough to cover yourself in, then pin the ends of the balloons to your shirt in a grape formation. Make sure to avoid sharp corners, and you have got yourself a creative costume!

The King of Pop

Because of his tragic death earlier in the year, Michael Jackson is going to be a hit costume this Halloween. To honor the late King of Pop, you can put dress like him by wearing a single glove, a colorful shirt, and a snazzy hat. If you have enough time you could even bedazzle your glove and hat for a more stylish look.

Mummy Costume

The mummy costume is a Halloween staple, especially for anyone looking to save money. Just get some medical gauze from the store and wrap it around a white shirt and light pants. To make the look more authentic you could lie out the gauze before hand and add some streaks of gray and black paint to give it a mummified look.

Balloon Boy

Since the Balloon Boy incident turned out to be a big hoax, and the boy was found in his own attic, you can easily make fun of this pop culture event by dressing like it for Halloween. The great thing about creating a Balloon Boy costume is that there are dozens of options. Since the boy was found inside a box in the attic you could put a big cardboard box around you and carry around a gray balloon. Or, you could wrap yourself in foil and mimic the now famous balloon that we all saw on the news. Just use your imagination and the possibilities are endless.

Tightening the Bankruptcy Laws in the Midst of a Deep Recession

From Creditslips.com:

Beginning on November 1, some people might suddenly find they are now ineligible for chapter 7 bankruptcy. Making it harder to file bankruptcy in the middle of our financial crisis may not be the best policy idea to come down the pike, but it is exactly what Congress set in motion in 2005. Here is why.

The U.S. bankruptcy law has a means test that is meant to filter "can pay" debtors into chapter 13. It's a test that was not needed--there was no evidence of widespread abuse of the bankruptcy system--and the test is not having its intended effect--the income distribution of filers has not changed. The means test begins with an inquiry that asks whether a debtor is above or below the state median income for a household of the same size in the debtor's state.

The state median income figures are periodically updated by the U.S. Census and the Executive Office for U.S. Trustees (EOUST) publishes a table that is used in the bankruptcy courts. Don't blame either the Census or the EOUST for this one. They are just doing what Congress directed. These changes happen automatically.

With the recession, incomes are going down. Thus, in half of the data points on the table, the median income that will subject a debtor to the means test has decreased. In Illinois, for example, right now a filer from a 1-person household goes through the means test if he or she has median income above $47,355. On November 1, that will change to $46,105.