Nextwave Finance http://www.nextwave.org Personal Finance Commentary Wed, 03 Dec 2008 16:58:55 +0000 http://wordpress.org/?v=2.6.2 en Using the Economic Downturn to Teach Kids About Saving http://www.nextwave.org/savings/using-the-economic-downturn-to-teach-kids-about-saving/ http://www.nextwave.org/savings/using-the-economic-downturn-to-teach-kids-about-saving/#comments Tue, 02 Dec 2008 16:18:06 +0000 alexis http://www.nextwave.org/?p=439 During the economic downturn, saving money is important and teaching kids to save is even more important. There is a theory that perhaps part of the reason we are struggling through a recession is due to the fact that money has been spent so unwisely over the years with little to no money in savings. Parents may not know how to approach the topic of finances with their children.

They may feel it is a personal matter better left unspoken. Kids are very impressionable and well aware of what is going on around them. It is best to speak as a family about concerns and benefit from the burden by teaching good saving and spending habits now.

Start Talking Early On About Importance of Saving

There are many ways that kids can save money. You can start young by buying a piggy bank for your child and encouraging them to store change in their piggy bank. Explain to them that they should save their money and why. It is good to have money later on when you really need or want something. By saving, you will have even more money for the things you need later on. Use patience and help your child understand the benefits of saving money in their brand new piggy bank.

Use Chores to Teach the Value of a Dollar

As kids get older, you will need different techniques. A older child can be rewarded by doing chores. Give them a daily allowance for doing what they are supposed to do and talk to them about saving their money in a box, envelope or any other personal change holder that they desire. As their money builds, take them to the bank so they can trade their change for dollars.

Tell your child that it is important to save money. Use examples that they can easily understand. Perhaps they want to buy something for themselves on their birthday or something for parents, grandparents or siblings during the holidays. Tell them that if they save money, they will be able to do these things.

Teenagers and Responsible Spending

Parents of teenage can encourage their kids to do a little work for money. Perhaps if you have a teenage daughter, you can encourage her to babysit. If you have a teenage son talk with him about mowing yards or shoveling sidewalks. There is also the option of delivering newspapers.

These are fantastic ways to teach your teens how to save money and even a sense of responsibility. Knowing that they have to work for their money will help them understand the importance of saving. Beware that their work does not get in the way of school.

The Percentage Technique

You can always use the percentage technique with your children. Tell them that whatever money they have, they have to save a certain percentage of it and the rest they can use for themselves. You can also agree to donate a certain amount for the money that they have.

For example, you will give them a dollar for every two dollars they have saved, or whatever amount you choose. Encourage older children such as teenagers to deposit money into a bank account that will accrue interest. Tell them that the more money they have in their account, the more money they will gain due to the interest rate.
By saving money, your children are not only learning what it is to save and the importance of saving, they are also stabilizing their future. Learning habits such as these now will help them to follow this pattern when they are older which will be beneficial for them and for your peace of mind as a parent. All parents want to know that their children are taken care of and have what they need.

Knowing that your children are taken care of is the most important thing to any parent. So instead of looking at the economic downturn as only negative, make positive adjustments in your life in order to better yourself in the situation. By showing your children that you can do this, you are teaching them one of the most important lessons they could ever learn.

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]]> http://www.nextwave.org/savings/using-the-economic-downturn-to-teach-kids-about-saving/feed/ Easy Ways To Save Money During The Holidays http://www.nextwave.org/uncategorized/easy-ways-to-save-money-during-the-holidays/ http://www.nextwave.org/uncategorized/easy-ways-to-save-money-during-the-holidays/#comments Mon, 01 Dec 2008 15:56:05 +0000 alexis http://www.nextwave.org/?p=435 The holiday season, while joyous, can be stressful for shoppers. With economic conditions weakening, financial situations in homes across America have decreased substantially. With a few helpful tips, there are easy ways to save money during the holidays that way you can enjoy the spirit of gift giving while sparing your wallet at the same time.

It is possible to save money without skimping out on your loved ones. All that is needed is a little creativity, thoughtful thinking and careful budgeting and planning.

Recycle
Bows and ribbons are a pretty addition to any holiday package. You can save money from having to buy new ribbons, bows or gift bags every year by reusing them. Many packages and gift bags require padding or tissue paper. This can easily be solved by recycling old newspapers, or Styrofoam packing that you might receive in packages in the mail.

You can also use a shredder to recycle discarded wrapping paper and various other forms of paper to use as padding. Cookies and other goods purchased around the holidays come in pretty decorative tins which can be reused as packages for loved ones.

Prioritize and Shop Smart
Clipping coupons is a great way to save pennies on the dollar. If you prioritize your shopping, you can end up saving yourself a surprising amount of money. A few tips to follow is to budget yourself and make a list.

If you list out who you need to shop for it will save you from the last minute panic of bulk spending which can lead to spending more than you planned to in the first place. Another good idea is to avoid doing all of your holiday shopping during the holiday rush. It is best to shop throughout the year or just after the holidays so that you can catch the best sales deals.

Homemade and Heartfelt
Nothing says I love you like a homemade gift. Not only are gifts such as these from the heart, they can also save you money in the long run. If you are the artistic or creative type, you can write a lovely poem or paint a beautiful work of art as a gift to your loves ones. Perhaps you enjoy baking.

Buy a cheap but beautifully decorated tin and bake cookies or other sweets to give to friends and family during the holiday season. This helps to save you money and yet you are still giving a wonderful gift without the worry of skimping.

Group Together
If you know you have a co-workers or a family to buy for you can buy a group gift instead of buying individually. A nice idea is a lovely piece of home decor or gift basket full of goodies whether baked or bought. Another great idea is to but a gift card to a nice restaurant such as Apple Bee’s. They can enjoy an outing together which is always a plus for anyone.

By buying a combined gift, you save yourself a lot more money than buying gifts for each person. The gift is still nice, thoughtful and very appreciated by the receiver. By giving a gift, whether combined or individual, you let someone know that you think and care about them.
By following these tips, you can save yourself a lot of stress and money during the holiday season. Holidays are meant to be a joyous time spent with those you love, not worrying what you should by and how much you have to spend. By lessening the financial burden, you have more time to concentrate on those around you and enjoy your time with them.

The gifts you give will still be enjoyed and seeing the appreciation of those you thought of is sure to be rewarding. Spending wisely, using creativity and thought and still making sure that everyone on your list has been taken care of can be quite a relief and that is how you should feel during the holidays.

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]]> http://www.nextwave.org/uncategorized/easy-ways-to-save-money-during-the-holidays/feed/ Obamas Cabinet - Can They Turn the Economy Around? http://www.nextwave.org/economy/obamas-cabinet-can-they-turn-the-economy-around/ http://www.nextwave.org/economy/obamas-cabinet-can-they-turn-the-economy-around/#comments Sun, 30 Nov 2008 15:23:44 +0000 admin http://www.nextwave.org/?p=417 Barack Obama was elected the forty fourth president of the United States of America on November 4, 2008. He is the first African American president to ever be elected.

President Elect Barack Obama’s cabinet has begun to take shape. He has started to form his economic team. It is crucial for him to have a strong and capable economic team because the economy has been suffering for the last few years.

President Elect Barack Obama has selected Timothy Geithner to be his treasury secretary. Geithner earned a Bachelor’s Degree in 1983 from Dartmouth College. He also earned a Master’s Degree at John Hopkins University in 1985. He has been the President of the Federal Reserve Bank in New York since 2003. He has worked with current Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, and Wall Street firms. He has worked for many years at various jobs related to the fields of finance and business. He was a key economic adviser to Barack Obama.

Lawrence Summers has been selected to be the new Director of the National Economic Council. He earned a Bachelor’s Degree in 1975 from the Massachusetts Institute of Technology. He also earned a PhD. in 1982 from Harvard University. He has held many high profile jobs in the field of economics. He is a former U.S. treasury secretary. He is currently an economics professor at Harvard University.

Christina Romer has been selected to be the Chair of the Council of Economic Advisers. She earned a Bachelor’s Degree from the College of William and Mary in 1981. She also earned a PhD. in 1985 from the Massachusetts Institute of Technology. She is currently employed as an economics professor at the University of California-Berkley. Romer has studied the history of the U.S. monetary policy from the Great Depression to today. She was an economic adviser to Barack Obama’s presidential campaign.

Melody Barnes has been selected to be the Director of the Domestic Policy Council. She earned a Bachelor’s Degree in 1986 from the University of North Carolina-Chapel Hill. She also earned a law degree in 1989 from the University of Michigan. She is currently employed as Co-director of the Agency Review Working Group for the transition. From 2003-2005 she served as Senator Edward Kennedy’s chief counsel on the Senate Judiciary Committee. She also worked from 2003-2008 as the Executive vice president for policy at the Center for American Progress.

President Elect Barack Obama has given news conferences about the economic crisis. He has said that reviving the economy is his top priority. He wants to invest in creating alternative energy jobs. There have been so many manufacturing jobs lost so he wants to invest in creating alternative fueled automobiles to help boost the struggling automobile industry.

Another thing that Barack Obama wants to do to help the economy is to invest in rebuilding our infrastructure. We need to fix our badly damaged bridges, roads, and streets. This could better the economy by producing more jobs that are necessary to build the necessary infrastructure.

The President Elect wants to give small businesses a tax credit if they do not outsource jobs which would help produce more jobs in the United States of America. The administration also wants to focus on fair trade which will open up foreign markets to help support American jobs.

He has asked his economic team to have an economic package put together so that he can sign it on day one of his administration. President Elect Barack Obama campaigned on giving a tax cut to ninety five percent of Americans. If this is purposed and passed then it could help give Americans some necessary tax relief and give a tax credit for Americans who earn less than $250,000 dollars a year.

President Elect Obama’s economic team will work to help propose and pass the necessary economic policies that will help to heal our long suffering economy. They will all advise the new president on how to deal with economic problems that have occurred and will occur in the future. They will come up with ideas on how to rectify the economic crisis and prevent future problems such as issues with banks and financial institutions failing.

Hopefully, the new president and his economic team will help get the United States on track. We will need help from other nations to help boost not only the United State’s economy but the world’s economy. The economic crisis needs to end so that everyone can have some financial and economic relief.

]]> http://www.nextwave.org/economy/obamas-cabinet-can-they-turn-the-economy-around/feed/ The Future of Gas http://www.nextwave.org/energy-costs/the-future-of-gas/ http://www.nextwave.org/energy-costs/the-future-of-gas/#comments Sat, 29 Nov 2008 15:16:53 +0000 admin http://www.nextwave.org/?p=414 The recent decrease in gas prices has been a welcomed change to the beleaguered American consumer. After four years of steady increases, the price of a gallon of gas has declined steadily since the financial crisis began abating worldwide demand in September. The national average gas price fell by 15 cents to $1.868 over the Thanksgiving holiday weekend, despite the expected increase in demand as travelers hit the roads to visit family.

On the Tuesday before Thanksgiving, a barrel of gasoline was priced at just $50.77 on the New York Mercantile Exchange — down more than $90 from its high of $147 per barrel in July.

What is the Cost of Cheap Gasoline?


Such a drastic decrease in price has some analysts worried, as the cost of gasoline affects demand and therefore justifies investment in production infrastructure by energy companies. At $50.77, many new projects are not economically viable and are shelved until the price rebounds. This could upset supply in the future and produce huge price increases and the economy recovers.

A low price per barrel also removes alternative energy development from the public consciousness, causing concern among environmentalists about the future of clean energy programs like wind power stations and solar panel research. With the price of gasoline running so low, politicians are not motivated to push clean energy agendas because those issues are not salient with voters. This could also prove problematic when the economy bounces back, as the development of these technologies will have to be started from scratch.

Why Did the Price of Gasoline Fall?


The price of gasoline fell so dramatically because worldwide demand cooled with the onset of the financial crisis. In order to save money, commuters and businesses alike have curbed their energy spending, and developing nations like India and China have scaled back their rapid growth. And while American drivers have been pleasantly surprised by the price at the pump over the past few months, the world’s energy producers are now beginning to consider lowering production to artificially inflate prices to a more sustainable level.

OPEC members have publicly stated that they would like to see the price of a barrel of oil sit somewhere near $75, a price that they say facilitates investment in infrastructure while still remaining low enough to be bearable by the average consumer.

Where is the Price of Gas Headed?


The New York Times recently reported that some analysts believe the price of a barrel of oil could fall to between $30 and $40 before it recovers. This is great news for consumers in the short term, but it could have catastrophic effects in the long term. The Wall Street Journal wrote in November that “more than four out of five refinery construction projects face cancellation” because of oil’s sharp decline in price; meanwhile, the International Energy Agency believes that a new source of energy equivalent to four Saudi Arabias must be found to meet current demand as well as the surge that can be expected from developing countries once the worldwide economy stabilizes.

These forecasts are rather ominous and underscore the importance of the issue. The price of oil reached unprecedented levels in the summer of 2008 that brought America’s dependence on fossil fuels to the forefront of public debate. But as the economy has become consumers’ main concern, this problem, while remaining urgent, has left the public discourse.

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]]> http://www.nextwave.org/energy-costs/the-future-of-gas/feed/ Deflation - What is it and Why Its Not as Good as it Sounds http://www.nextwave.org/economy/deflation-what-is-it-and-why-its-not-as-good-as-it-sounds/ http://www.nextwave.org/economy/deflation-what-is-it-and-why-its-not-as-good-as-it-sounds/#comments Fri, 28 Nov 2008 17:12:45 +0000 admin http://www.nextwave.org/?p=411 What is Deflation?

Deflation, as defined within the study of economics, is a general decrease in the price level of goods and services below zero percent. The below zero percent qualifier is important because it indicates that prices are actually decreasing as opposed to increasing to a lower degree than in previous periods. In other words, a decrease in price levels from +5% to +4% from one period to the next is not considered to be deflation — it’s called disinflation, and it still signifies an increase in prices.

Deflation is a decrease in price levels; it essentially means that money is more valuable from one period to the next. If the price of a pair of shoes was $100 in one period and $80 in the next, the price level of those shoes decreased by 20% and the purchasing power of one dollar increased by 20%.

The consumer price index, or CPI, decreased by the largest margin on record in October — 1%. This is important because it signals the onset of what could turn into a deflationary price environment. The CPI tracks a basket of consumer goods across the the country and measures monthly aggregate changes.

A 1% decrease means that the prices of consumer goods dropped by 1% month to month — or, alternatively, that the purchasing power of a dollar increased by 1% from month to month. The number of houses that entered construction — or “housing starts” — also decreased by 12%. Compared to the same time last year, work was begun on 38% fewer homes.

Why are Falling Prices Bad?

Falling prices and increased purchasing power sound like good things — they mean that the average consumer can buy more for less. But consumer spending represents nearly 2/3rds of the American economy; the shopping mall is the cornerstone of American commerce. Consumers buying more for less also means that retailers sell less for more, and retailers are the ones employing Americans.

It’s the interrelationship between consumer spending and employment that renders deflation dangerous: when prices drop, employers cut wages and lay people off. When wages are cut and people are laid off, consumer spending decreases and prices drop.

This is called a Deflationary Spiral, and it can be devastating to an economy. A deflationary spiral contributed to the Great Depression, during which unemployment peaked at 25%.

One participatory effect in a deflationary spiral is the increasing value of debt. When the purchasing power of a dollar increases, so does the value of the balance on a mortgage, a car loan, a student loan, etc. If prices drop 10% month-over-month but an individuals wage remains constant, it means that the payments on his debts increase by 10%.

This is especially relevant in the current economic crisis as it will accelerate home foreclosures and further destabilize the banking industry, which made highly-leveraged bets on foreclosure rates staying relatively calm. If the US does enter a period of deflation, it could have dire effects on the already tight credit markets, with corporate banks refusing to lend money.

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]]> http://www.nextwave.org/economy/deflation-what-is-it-and-why-its-not-as-good-as-it-sounds/feed/ Global Economy Summits - Can World Leaders Find a Solution Together? http://www.nextwave.org/economy/global-economy-summits-can-world-leaders-find-a-solution-together/ http://www.nextwave.org/economy/global-economy-summits-can-world-leaders-find-a-solution-together/#comments Thu, 27 Nov 2008 16:58:52 +0000 admin http://www.nextwave.org/?p=408 The Summit on Financial Markets and the World Economy was held on November 15, 2008. There were many countries represented at the summit. The following countries were represented: The United States of America, Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Netherlands, Republic of Korea, Russia, Saudi Arabia, South Africa, Spain, Turkey, United Kingdom, and the European Union.

There were many country leaders at the summit. The following country leaders were present at the summit:

  • President George W. Bush of the United States of America
  • President Carlos Fernandez of Argentina
  • Prime Minister Kevin Rudd of Australia
  • President Luiz Inacio Lula da Silva, of Brazil
  • Prime Minister Steven Joseph Harper, of Canada
  • President Hu Jintao of China
  • President Nicolas Sarkozy of France
  • Chancellor Angela Merkel of Germany
  • President Mammohan Singh of India
  • President Susilo Bambang Yudhoyono of Indonesia
  • President Silvio Berlusconi of Italy
  • Prime Minister Taro Aso of Japan
  • President Felipe Calderon Hinojosa of Mexico
  • Prime Minister Jan Peter Balkenede of Netherlands
  • President Lee Myung-bak of the Republic of Korea
  • President Dmitry Medvedev of Russia
  • King Abdullah Bin Abdulaziz of Saudi Arabia
  • President Kgalema Motlanthe of South Africa
  • President Jose Luis Rodriguez Zapatero of Spain
  • Prime Minister Recep Tayyip Erdogan of Turkey
  • Prime Minister Gordon Brown of the United Kingdom
  • Jose Manuel Barroso who is the President of the European Commission.

The country leaders discussed what had happened to cause the financial crisis. They talked about how they can work together to take action and heal the world’s economy.

The country leaders accomplished many things at this summit. They discovered the cause of the economic and financial crisis. They agreed on the financial principles that are needed to reform the global financial markets. They agreed that all nations need to work together to end the financial crisis.

The leaders decided to take action and stimulate their economies, strengthen the world’s financial and banking institutions, unfreeze credit markets, and strength the capital that banking and financial institutions have.

All in all, the summit was very productive. It is good that the country leaders want to take a global approach to fixing the economy.

The Asian Pacific Economic Cooperation Summit was held on November 22-23 2008 in Lima, Peru. Twenty one countries make up the Asia-Pacific Economic Cooperation. These countries include: Australia, Brunei, Canada, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, Republic of China, Hong Kong, People’s Republic of China, Mexico, Papua New Guinea, Chile, Peru, Russia, and Vietnam.

The following country leaders attended the Asia Pacific Economic Cooperation Summit in November 2008:

  • Prime Minister Kevin Rudd of Australia
  • Sultan Hassanal Bolkiah of Brunei
  • Prime Minister Stephen Harper of Canada
  • President Michele Bachelet of Chile
  • President Hu Jintao of People’s Republic of China
  • Lien Chien of Republic of China
  • Chief Executive Donald Tsang of Hong Kong
  • President Susilo Bambang Yudhoyono of Indonesia
  • Prime Minister Taro Aso of Japan
  • President Lee Myung- bak of Republic of Korea
  • Prime Minister Abdullah Ahmad Badawi of Malaysia
  • President Felipe Calderon of Mexico
  • Prime Minister John Key of New Zealand
  • Prime Minister Sir Michael Somare of Papua New Guinea
  • President Alan Garcia of Peru
  • President Gloria Macapagal-Arroyo of Philippines
  • President Dmitry Medvedev of Russia
  • Prime Minister Lee Hsien Loong of Singapore
  • Prime Minister Somchai Wongsawat of Thailand
  • President George W. Bush of the United States of America
  • President Nguyen Minh Triet of Vietnam

The leaders discussed the need for corporate social responsibility, the financial crisis, climate change, corruption, trade liberalization and many more global issues.

The country leaders decided to continue to back free trade. They also wanted to reform the world’s banking and financial institutions to help stop a recession from occurring. The leaders agreed to not impose any new trade barriers in the next year to help deal with the economic crisis and allow free trade to continue to happen.

These two economic summits are a step in the right direction. We need world leaders to communicate and come up with ways to help make the world’s economy stronger. The last few years have been hard on the economy so it is important for the global economic issues that we face to be dealt with in a timely fashion. Hopefully, these country leaders will be able to implement these ideas and boost the world’s economy.

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]]> http://www.nextwave.org/economy/global-economy-summits-can-world-leaders-find-a-solution-together/feed/ The American Dream and Declining Home Values http://www.nextwave.org/real-estate/the-american-dream-and-declining-home-values/ http://www.nextwave.org/real-estate/the-american-dream-and-declining-home-values/#comments Wed, 26 Nov 2008 17:53:19 +0000 admin http://www.nextwave.org/?p=403 As the economy and real estate continue to decline into a deep recession, the American dream is fast fading away. People dream to one day be a homeowner in a financially stable situation. The percentage of single family homes sold in the United States continues to decrease dramatically and more multi-family homes are being built each day. Housing with shared amenities, properties, and less of the freedom that a homeowner dreams of one day having.

The housing market will continue to fall as credit conditions get worse. With the credit crunch and many people unable to make enough to support themselves and pay their bills, financial companies are finding it harder and harder to get people into homes. As each day goes by, homeowners lose their value on their house due to an economy that keeps plummeting, jobs that become unavailable or cut back on wages. This leads to financial hardship and American are unable to afford house payments on top of other important bills.

President-elect Barak Obama says that he will address the rising foreclosure crisis and hopes to come up with a plan to turn the economy around. The number of homes that will appear on the foreclosure market are predicted to increase over the next several months. Construction companies that realize a crashing market when they see one are deciding to buy smaller lots that will contain more condos and townhouses for families to share with one another. Many American across the U.S. have found the American Dream far out of reach or quickly fading away.

Owning a home was once a crucial and fundamental building block of the American dream. It led to a sense of independence, confidence, pride and has had positive results on the children of homeowners. Studies had concluded that children that lived in a home that their parents owned had a tendency to do better in school as they had more pride in themselves. Employees worked harder to keep their dream alive. Marriages even seem to improve with home ownership. It is the worry of the nation that as the real estate market crashes, these statistics will fail along with it.

As foreclosures continue to pour into the market with a fury like no other, the demand for construction comes to a halt. Buyers have tried to take advantage of a plummeting market which has led to a strict law which will decline assistance for a down payment. As the value of these homes continue to go down, mortgages become unavailable to the home owner which then pushes them into foreclosure as an only option. It is one of the most frustrating, heart-breaking, and pride demeaning issues to the American dream.

Another increasingly alarming fact about the economy and the failing real estate market is the fact that most men who are in their 30’s seem to be making less on average than their fathers did when they were in their 30’s. There has been an increase among American families, the number of women that go out of the home to work. While this has proven to raise the income status, the rising cost of living and spending has put many individuals into debt. Debt leads to a poor credit report and a poor credit report leads to being declined on a loan application for a new home.

Many people are losing faith in the American dream and in the economy as the demands and stress of financial hardship presses down. The number of people who believe that surviving by today’s standards means more than hard work increases each day. People are more likely to believe that you have to be born into a wealthy family in order to maintain structure. Perhaps it is the fact that the American dream of home ownership was so stressed upon us that we now consider ourselves failures for not being able to obtain that dream anymore. Hopefully, the President-elect Obama will be able to give us a small ounce of hope for the future.

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]]> http://www.nextwave.org/real-estate/the-american-dream-and-declining-home-values/feed/ Will Crime Go Up As the Economy Goes Down? http://www.nextwave.org/economy/will-crime-go-up-as-the-economy-goes-down/ http://www.nextwave.org/economy/will-crime-go-up-as-the-economy-goes-down/#comments Tue, 25 Nov 2008 18:31:45 +0000 admin http://www.nextwave.org/?p=400 Will Crime Go Up as the Economy Goes Down?

Many people believe that the nation’s crime rate is correlated with the state of the economy — that is, as the economy dwindles, the rate of crime increases. It’s not an invalid fear: when people lose their jobs and become desperate to make ends meet, they sometimes turn to petty crime to help alleviate their economic problems.

But while the connection makes intuitive sense — when people have nothing to lose, they’re more likely to commit crimes — it hasn’t been proved to be true historically. This can be explained by a number of different factors: for one, the people that are most likely to commit crimes during bad economic times are generally just as likely to commit them in good economic times. This tendency essentially means that crime is not affected by this group; their propensity to commit crime is not changed by the condition of the economy.

A second factor that affects the crime rate during recessions is the fact that people move in with their families when the economy is unstable. This phenomenon actually has a stabilizing effect on the crime rate; instead of being pressed for money to pay rent, younger people — the most prone to resorting to crime out of desperation — rely on their parents or grandparents for support and thus are less likely to commit crimes they might otherwise feel pressured to commit.

The difference is not that their families offer more support in tough times, but that they feel less shame for accepting it. There is less of a negative stigma attached to relying on one’s family for support in a downturn, and this acceptance makes it easier for young people to avoid crimes that they would otherwise have to commit in order to survive.

How Will the Current Recession Effect Crime?

There is some precedent of crime increasing during periods of economic slowdown. Murder rates hit historical highs in cities across the country following the stock market crash of 1987, but many criminologists attribute this increase to the proliferation of crack cocaine and the subsequent gang warfare that it engendered.

One affect of the downturn that many police departments are preparing to deal with is an increase in domestic violence — much of it unreported. Domestic violence has historically increased as the economy goes down, owing to an increased sense of helplessness and frustration by individuals who have been laid off or cannot find employment.

Another way in which crime goes up as the economy goes down is in mental health citations, or incidents in which people act abnormally and must be confronted by the police. These citations generally see a significant increase during bad economic times, and, while not necessarily affecting the countries crime rate, put strain on police budgets.

In general, bad economic times do not catalyze sharp, drastic upswings in the crime rate. For the most part, crime is not expected to increase by any appreciable amount over the next few years. And while mass hysteria and paranoia should be avoided, the average person should still take the same precautions they normally take to safeguard themselves from becoming a victim of crime.

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]]> http://www.nextwave.org/economy/will-crime-go-up-as-the-economy-goes-down/feed/ Will Credit Card Debtors Get Government Aid? http://www.nextwave.org/credit-cards/will-credit-card-debtors-get-government-aid/ http://www.nextwave.org/credit-cards/will-credit-card-debtors-get-government-aid/#comments Mon, 24 Nov 2008 20:56:54 +0000 admin http://www.nextwave.org/?p=397 While much has been said of the current financial situation in terms of mortgages and homeowners, other types of debtors have been neglected. Though it is certainly true that mortgages and banks failing are the story in this failing economy, it is equally true that bad consumer debt has played a role in hurting the economy and causing people to lose their homes.

You might not hear about it as much on the news, but credit card debtors are in just as much trouble as those folks who lost their home to foreclosure.

Much of this problem has come as a result of an alarming and disturbing trend among Americans. These days, people are spending money that they don’t have and they are willing to run up big debts. They think that they will eventually have the money to pay off these debts, but the credit card debt cycle just keeps them in check and they never seem to get that big paycheck that will pull them out of debt.

With that in mind, what is being done for these people? Is there any light at the end of this particularly ugly tunnel?

If you are in credit card debt, don’t look for there to be any government bailout for you in the near future. The government has shown the willingness to help people who are losing their homes, but they don’t seem willing to help you pay for the shopping spree that you took a few months ago.

The government is seeking to knock out the problem from the top and let the positive effects trickle down. They want to make sure that the banks and the mortgage lenders are in good shape so that the economy can be restored and people can once again invest their money with confidence. Though it might sound harsh, the plight of small Americans with credit card debt is not anything that the government is overly concerned with.

This could change a little bit in the coming weeks, though, especially for those customers who are with American Express. In the ever-present banking shakeup, Amex is moving over into the banking industry. This means that they will probably be receiving government assistance of some kind. Though this is good for the company itself and it should help them prosper, don’t expect it to do too much for people with common credit card debt.

Those folks will be left to do what they always do, and that is struggle under the burden of credit card debt that is too much to handle. Though it is an ugly problem that is every bit as big a cause of the current economic problems as the housing breakdown, there does not seem to be any easy way for the government to bail people out of these debts. Because of that, they will stand.

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]]> http://www.nextwave.org/credit-cards/will-credit-card-debtors-get-government-aid/feed/ Bear Market and Bull Market - What’s the Difference? http://www.nextwave.org/uncategorized/bear-market-and-bull-market-whats-the-difference/ http://www.nextwave.org/uncategorized/bear-market-and-bull-market-whats-the-difference/#comments Fri, 21 Nov 2008 19:34:20 +0000 admin http://www.nextwave.org/?p=394 When it comes to evaluating the stock market, there are many terms that are used. All in all, the stock market is not too difficult to understand, given the right context. With it being in the news these days more than almost any other time, people are seeking to understand what they’ve been hearing from newscasters and so called television experts.

One thing you might have heard is the market trend term “bear market” or the term “bull market”. These two things stand opposed to one another and as an investor, you need to know the difference and how it affects the currents market.

A bear market is one where investors are generally scared and their investments reflect this fear. In short, it means that there are certain reasons why people are not putting their money into the market in huge amounts. More times than not, a bear market will rapidly get more bearish because people believe that their financial situation is getting worse, so more and more folks will stop putting their money into the stock market like they would have usually done.

If you have heard the term bear market today it is because, for the most part, we are experiencing this. With the global economy taking a hit and there being widespread uncertainty about the America’s political situation, people are reluctant to invest their money.

A bull market, on the other hand, is quite different. While a bear market is categorized by lots of fear, a bull market is one where the outlook is generally pretty rosy. This is a market where consumers on the whole are looking forward to increases in their capital gains and individuals are willing to invest in what figures to be a pretty positive situation.

The current market has seen its fair share of bull markets, as it has gone through stages where it shifts from being a bear market to being a bull market quickly. Because investors are so fickle in this day and age, the market is always shifting between the two depending upon the day’s events and what is going on in the offices of Wall Street.

With the current marketing being more of a bear market, this really means that there are some nice opportunities to invest money right now. In a bull market, people rush to get their money involved because they see lots of opportunity. This can push the price of many stocks through the roof and leave some people feeling great, while others are feeling awful about their financial plight.

A bear market does not tend to be this volatile and people are slower to action. As with the situation right now, investors will find that there is a lot of room for their investment opportunities to grow because the prices are so low with some stocks.

If you have the stomach for investing in such times, a bull market can be a really nice opportunity. Be advised that it is not for the weak minded, though. A bull market can sometimes take months to pull ahead. In a bull market, the spoils typically go to those people who have the ability to show patience and wait the situation out.

This is where being a savvy, experienced investor comes into play. If you are looking to have a more long-term approach to your investing, then it should not bother you to put money in during moments when the market is bullish.

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