I’ve discussed how to avoid foreclosure and how to avoid bankruptcy in the past, but in some cases, things don’t work out too well, and there are people who end up becoming casualties of the real estate bust, credit crisis and weak job market.

Lots of people have been forced into homelessness due to a variety of reasons. Many cases of homelessness are because of mistakes and choices people make in their lives. There are those who fall into substance abuse and become stuck in this kind of existence. But there are other cases — particularly in recent years — that are not from bad choices. In some situations, it may be due to poor planning.

But this is not the entire story because there are those who fall into homelessness even with reasonable planning. Sometimes, even when you think you’re sufficiently ready for any kind of emergency, the sky does fall on you and you find yourself reeling from an unrecoverable financial predicament. Bad health can do it. Extended job loss can do it as well. Sheer bad luck and misfortune can just be in the cards for a while.

I used to think that with enough savings and preparation, nothing is insurmountable. Well, I’m halfway through my life now and I’ve seen enough to think otherwise. Sometimes, it’s about crossing your fingers too, and hoping that you never have to face a financial tsunami in your lifetime.

On that note, I’d like to share this CNN video that I found quite surprising in many ways. It’s about “tunnel dwellers” in Las Vegas; not everything is what it seems…

Steve Dommer and his girlfriend, Kathryn, live in the depths below the Vegas Strip. They created an elaborate 400-square-foot space, complete with a living room, bedroom, kitchen and workshop to fix bicycles. Everything is elevated off the floor with wooden pallets or milk crates because of potential flooding.

The guy in the video does not look homeless, yet he is. He’s coping, somehow. I guess this is the type of story that reminds us that homelessness can befall anyone, and why public awareness of programs like Help USA is important.

Personal Finance Articles

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• Sun’s Financial Diary: October 2009 Score Card — Part I: Net Worth
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• Financial Samurai: Never Call In Sick On Friday, Slacker!
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How One Homeless Person Lives: Coping With Homelessness

YNAB Pro Giveaway Code: fibonacci

What should you do when your credit card company raises your interest rate? Here are some thoughts on credit card reform from our contributing writer, Jacques Sprenger.

I thought I had the best credit card around. But then getting a sudden rate hike on your credit card for no reason whatsoever is like an icy shower when you expected warm water. My issuer just hit me with such a raise which didn’t improve my mood in spite of their friendly accompanying letter: “Your history as a preferred customer has nothing to do with the interest hike which was caused by the economy’s present circumstances. You may reject the raise by paying off your credit card balance.” Right, like we have $4,000 lying around just for that purpose. The average American family owes more than $10,000 on credit cards which used to be given in cereal boxes (a little hyperbole!). Now you have to show that you make as much as Bill Gates to be approved (yes, another hyperbole).

The Government Intervenes With New Credit Card Rules

Check out the following image by Make Them Accountable. Left panel says — “before strict new credit card rules”. Right panel says — “After: Warning. Largest unsecured piano”.

President Obama would get a lot of kudos if he can convince the credit card companies to play fair: it’s actually good to see some inroads made on this matter, where the credit card industry has been made to face the “new rules of the road”. The President is apparently very much committed to leveling the playing field: “The days of any time, any reason rate hikes and late fee traps have to end,” Obama said. Chris Dodd, a long time senator who has been embroiled in lobbying controversies, is trying to burnish his image by going after the credit card companies full blast; you may have seen him make the news a lot recently. Sen. Dodd wants the new credit card rules enforced immediately and has demanded a freeze on interest rates on all existing credit cards debts. In fact, he’s introduced a bill on this recently.

What About a Credit Card Bail Out For Families?

What we also need is a plan to help those families who face a financial crisis because of illness or lay-offs. Why should we bail out all these banks, many of which own the credit card companies, if all they can think of is to lower your credit limits and raise your payments? For the life of me I can’t figure out how punishing people is going to allow them to pay their debts. And yet, banks routinely smack us with humongous interest rates because we are late ONE day. While the Fed has lowered rates to almost zero, predator credit card companies charge up to 39% for making a late payment. They should talk to some insurance companies which offer first accident forgiveness. Being late on one payment happens to all of us due to oversight or simply a slow post office. Forget the deadbeats and irresponsible people who max out their credit cards knowing they will never pay them. We are talking about upstanding people who have been paying religiously for 10 years and who’ve made these companies (and CEOs) rich.

Should You Opt Out of Interest Rate Increases?

Some people have felt the pinch: here’s someone who tells us his own story about paying 8.9% on his credit card bill, and he’s never missed a payment. He mentions how his interest rate “.. would change to a variable rate of 14.65% annually.” His card issuer is BofA — “the fine folks at Bank of America, who’ve spent the last few years buying up failed institutions like Countrywide and Merrill Lynch and taking some $163 billion in taxpayer bailout pledges..” So while BofA has screwed up and received billions of bail out money, they’re not exactly giving their customers much leeway. Here’s what this customer tells us:

The credit card interest rate hike is an offer I’m allowed to refuse. I can reject the increase and pay off the balance at the current terms, but that means I would no longer be able to use the card. If I reject the increase, it also means my credit line on that account would effectively shrink to the current balance, which could hurt my credit score.

Whether or not you decide to opt out of your interest rate hikes, you may be up the creek either way. But then again, we shouldn’t forget that using credit cards is simply a privilege. I’m crossing my fingers that existing 0% APR credit cards and balance transfer cards avoid going the way of the Dodo bird.

What Are Your Options?

Is there something we can do? My opinion here is that unless you have no choice (the new card terms and conditions are unacceptable), then keep the card, pay the least amount possible above the minimum and DO NOT use your card again. It will preserve your credit and will allow you to sign up for a new low interest rate credit card… as soon as you can find one. If you have to pay off the card, make sure you don’t close your account; simply stop using your card, again to keep your credit rating intact.

New Credit Card Rules, Opting Out of Interest Rate Increases

YNAB Pro Giveaway Code: fibonacci

Is the economic downturn over? That’s what “they” say.

CNN Money just released an interesting slideshow about the state of the economy as of late. If you’re wondering about when (or whether) this economy will be *truly* turning around and whether your vague unsettling feelings about it have any basis, then these hard numbers should help give you perspective. If you’re going to get anything from this post, maybe it’s this: that this recession is the longest, most grating one we’ve had post World War II.

The small bit of positive news is that the economy is supposedly showing some signs of life, although the quick vote polls don’t really reflect that much enthusiasm from the citizenry just yet.

Economic Fundamentals: A Reality Check

So here’s my own commentary on the economy (based on CNN’s slideshow), which I think is still shaking off the severe hangover its been on for some time now.

1. GDP and Economic Growth: Good

The latest growth numbers have been decent, but a lot of this may be attributed to cut backs in the business sector, layoffs, the stimulus plan, bailouts and who knows what else can be propping up our economy. So are we seeing true economic growth here? And does this justify the corresponding recovery we’re seeing in the stock market?

2. Jobs Situation: Slow Going

Just last week, I took a look at the national unemployment statistics and lamented the job loss numbers — which in some locales, appear to be at record highs. But here’s something to chew on: how many laid off workers are really eager to get jobs right now? Personally, I’ve encountered more than a few people enjoying unemployment benefits whilst taking their time to find “the right job” that would pay a wage they were happy with. Not that anything’s wrong with that, but it goes to show that a lot of jobs that are available today may be going unfilled (by choice) while “job searchers” pick and choose where to work or decide to sit back and collect unemployment checks while they can. Not everyone out there is desperate to take any job; there are still those who are taking their time to find just the right one.

3. Stock Market: Ahead of Itself?

I still don’t get the stock market and what my online brokerage accounts are telling me: I’ve actually been making some money with my investments recently. I should be happy, right? But I’m actually still quite wary of the possibility of a double dip recession. With this market being so responsive to the good news, I hope we don’t pay too badly for what appears, in my opinion, to be premature exuberance.

4. Inflation Watch: Okay

With the economy still in the doldrums, inflation looks tame. But economists warn that once growth picks up, inflation may become the economy’s new waterloo — which won’t be a good thing even with the small consolation of savings account rates creeping back up. This is one element of the economy that may look good now, but may shift on a dime later, when spending picks up.

5. Housing: Spotty

Supposedly, housing is seeing a slow recovery. You can say that again. The government has tried to intervene on this front by offering relief to homeowners via tax breaks and other incentives which were folded into the last massive stimulus package. Foreclosures are up in some places, while housing prices are steady in some others: the recovery in real estate still seems spotty.

6. Spending: Slightly Improved

You can attribute some of the recent consumer spending activity to the government (Cash For Clunkers, home buyer credit, etc). But at a time like this, shouldn’t we all be watching our home budgets and pocketbooks even more? These days, it’s “hip” to be cheap!

My take on the big picture? I think a lot of what’s being reported as a “recovery” is pretty localized. For instance, I know too many people who are still out of jobs or who are working at places they wouldn’t otherwise be if they had a choice. I know a few people still worried about their debts, credit cards and housing situation. So I can only be curious about what the next several months will bring, and am wondering when the true turning point for this economy will be.

Economic Growth Is Up. What Now?

YNAB Pro Giveaway Code: fibonacci

Still keeping an eye on unemployment numbers: watching this is like rubbernecking at a train wreck.

Wonder what this stock market is rejoicing about. No, I’m not at all grumpy that it seems to defy logic but as I mentioned earlier, with the underlying threat of a double dip recession permeating our economy, I’m clearly flummoxed about the Dow still breaching 10,000.

Also, I am not really griping — I can’t complain since I’m more of a long term investor and the welcome rise I’m seeing in my retirement funds makes me “relax” a little. But only a little, since the behavior in the markets doesn’t seem all too logical (since when did it make sense…), prompting me to believe that this uptrend is being built up to eventually result in a nasty correction. What’s that saying again? The higher it rises, the harder it falls.

National Unemployment Statistics: Job Losses At Record Highs

Here’s what I mean: it just doesn’t look good out there. The Calculated Risk blog points out that the latest unemployment figures (for last September) were very dismal for many states, with the following info from the Bureau of Labor Statistics (click to enlarge):

Visit Calculated Risk for the bigger picture.

Michigan again recorded the highest unemployment rate among the states, 15.3 percent, in September. The states with the next highest rates were Nevada, 13.3 percent; Rhode Island, 13.0 percent; and California, 12.2 percent. The rates in Nevada and Rhode Island set new series highs. Florida, at 11.0 percent, also posted a series high.

Here’s another look at this through the eyes of Google. Check out the interactive graph for the whole scoop:

Let’s see: since I live here in California, how about I dwell on this a little. I’ve been following California’s unemployment rate for a while now, and it’s ugly. From what I hear and read, it’s dreadful. And from what I know, the numbers don’t tell the full story either: a local radio station here reported a state unemployment rate of around 20% if you count discouraged workers or those who’ve given up on unemployment benefits. This MSNBC article discusses just how underestimated and under-reported the job numbers are:

Counting people who are no longer collecting unemployment, never received unemployment because they didn’t qualify or people who are working part time just to have a little income – [the unemployment rate is] more like 19-22 percent.

My personal vantage point also coincides with these findings: for instance, at least one family member and one good friend are struggling with work issues right now, taking on jobs that aren’t really along their lines of work because there’s nothing else available. Call after call to headhunters aren’t yielding results, with interviews not really amounting to much at this time. I’m not participating in this job market right now, but I can feel the discouragement, frustration and pain from those around me. It’s contagious.

Oh yeah, there’s also the latest news bomb that Sun is slashing 3,000 employees from its workforce while waiting for Oracle to take on the reins (recall that Oracle is absorbing Sun). That’s 10% of Sun’s workforce, and another 3,000 more technologists, engineers and other personnel who will be competing with the unemployed, here in the Valley.

These days, I’m just urging and advising those around me to go after any job that catches their eye. Cast a wide net and take a job — any job. At this point, any kind of paid work is a good thing.

That was my piece. Now if you’re in the mood for a good rant, see how the Monevator goes off on bankers! For more on finance around the net, check out the articles below.

Personal Finance Articles

• One Mint: Why DCA Does Not Work For Me. Manshu’s analysis and arguments consistently fascinate me, and this is just one more example of his work.
• Smart Spending: On other news, MSN Money’s Smart Spending blog featured my guest post: Close Encounters With ID Theft. Thanks to Karen Datko for the coverage.
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• Money Smart Life: What Was the Best $100 You’ve Ever Spent?
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• Brip Blap: Everyone Is Special and Unique

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National Unemployment Statistics: Job Losses At Record Highs

YNAB Pro Giveaway Code: fibonacci

Is the bull back?!

Now that the stock market has hit the magic Dow Jones 10,000 mark, it sure feels like a hard fought climb up to that milestone. It’s still a ways away from 14,000 for the DJIA, which was once achieved in 2007, but as some of you may think — “we’re getting there.”

Image from the NY Times

Double Dip Recession: Why Dow 10,000 May Not Last

But here’s the thing: like many other market followers, I am quite nervous about this development in the equity market. Sure, we’re supposedly in an economic recovery right now, but many people are still feeling the pinch of lost jobs, no jobs or upside down mortgages, as far as I’ve noticed. As I’ve discussed before, we’re far from celebrating here in the SF Bay Area: the California unemployment rate is stuck above 12%, and as this interactive graph shows, it’s only gotten worse over time.

What’s more concerning to me is this thing that some economists are warning about: the risk of a double dip recession for our economy. For instance, I heard about how Carl Icahn (a billionaire investor) has been addressing the possibility of a double dip recession due to continued rising unemployment, which could very well impact the coming retail season as people put a cap on their spending. According to him, “we’re right on the precipice” of another economic contraction (quoted from this Bloomberg article). Here are some interesting points on this:

Yahoo Finance chart of the Dow Jones over the last 5 years.

The stock market going to 10,000 could simply be caused by investors realizing that we aren’t really going to the doghouse as badly as we initially thought. Good to know that so far, we’ve established the 6,000 level as “the bottom”. But really, is the Dow at 10,000 (or even 9,000) justified right now? I’m definitely in the camp that doesn’t think so.

As I review the fundamentals, I feel uncertain about this upward march in stock prices.

• We’re supposed to be recovering from the worst recession since the 1930s. Somehow, I expect it to take more work for us to pull out of the depths of this hole.
• In September of 2009, unemployment went up to 9.8% nationally, the highest levels since 1983.
• Can inflation be around the corner?
• What’s fueling the market’s rise? Improved earnings reports, apparently, but these are a result of business cut backs and company layoffs, rather than real growth.

So what do you think. How long will this mini-bubble last? Is anyone optimistic?

Personal Finance Articles

On to other exciting things: let’s check out what’s going on elsewhere!

• Her Every Cent Counts: Woohoo! I made it to this great list of female bloggers in finance! Definitely a nice resource for those of you who want to meet female money writers.
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Double Dip Recession: Why Dow 10,000 May Not Last

YNAB Pro Giveaway Code: fibonacci

Well, we’re back where we started. The Dow Jones is creeping towards 10,000 in the midst of an economic recovery — at least, that’s what the general consensus is right now. Today, the Fed has decided to keep interest rates unchanged and near zero, which is going to be the status quo for an undetermined amount of time.

Not a good thing for your cash savings (e.g. high yield savings accounts and certificates of deposit) which will continue to be saddled by anemic savings account rates and returns, but a positive thing for investors as stocks look more appealing and attractive in a low interest rate environment. Check out the historical chart showing the performance of the Dow Jones Industrials over the past five years from Yahoo! Finance (click to enlarge):

We’re almost where we were last year, which is coincidentally also where the market placed itself 5 years ago. The market has not made much progress, but if you had continued to invest regularly during the last year and had dollar cost averaged throughout this time, you’d be a happy (or relatively happier) camper.

One Year Investment Performance: Why Dollar Cost Averaging Works

I found this interesting example of how your investments would fare if you dollar cost average into a fluctuating market (the example is taken from Tomorrow’s Scholar College Savings Plan). They have a dollar cost averaging calculator where I plugged in a monthly investment amount of $1,000 as an example and got these results:

The monthly investment of $1,000 invested over a hypothetical one year period yielded some nice results even though the share prices shown during that year seemingly went nowhere. In this particular case, the return is 17%! Now applying this example to what’s happened this year — I would surmise that you may have achieved comparable returns (which could actually be more fruitful if you’ve doubled down when the market was at its lowest). If you haven’t been dollar cost averaging but instead did a rebalancing of your portfolio 6 months ago when the DJIA carved out a bottom, you’d also be sitting on some gains.

So did you make any money this past year? Here’s hoping this recovery continues and we avoid the double dip scenario.

For more on this topic, check out my articles:

• You’ve Got Money: Invest It All or Dollar Cost Average?
• Down Year Ahead? How It Can Be Good For Your Investments

One Year Investment Performance: Why Dollar Cost Averaging Works

YNAB Pro Giveaway Code: fibonacci

What is the job situation where you are? Overall, jobless claims have been lower compared to earlier this year, thanks to Obama’s stimulus package and signs of recovery in certain industries. The national unemployment rate is still up there though, and will expect to hit 10% by the close of this year. Despite the sour statistics, I’ve been hearing rumblings that this is the beginning of the end… of the recession that is. So the stock market is doing a happy dance right now, in response. But who knows what lies ahead?

Anyway, while things are seemingly improving across the nation, California’s recovery is less apparent. Our economy here is still in the doldrums. Beyond the California budget crisis to worry about, we’ve also got the fourth highest unemployment rate with almost 12% (11.9% to be exact) of workers marked as unemployed. Some of my colleagues are still looking around for jobs or are in between projects. Where I live, the job situation just doesn’t look too favorable. I actually found this colorful map that illustrates our plight: any region that’s green (0 to 10% unemployment) is in relatively better shape than areas in pink, red and purple (21% to 30% unemployment). Check it out!

Click on this link or the image below to play with the map (the slider on the graphic below won’t work, just click the pic to try out the tool):

So how is it in your neck of the woods?

Personal Finance Articles

As for finance in the blogging community, let’s see what’s cooking:

• The Wallet: When Making Investing Decisions, Don’t Follow Your Gut
• Free Money Finance: Use Questions as a Basis for Selling Yourself
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California Unemployment Rate History: A Visual Guide

YNAB Pro Giveaway Code: fibonacci

Thoughts on the Dow Jones over the 9,000 mark.

Stock Market Performance: Any Cause To Rejoice?

At the beginning of this month, I wrote an article inquiring whether the economic downturn was over. I wrote about the use of an interesting economic indicator that could herald the end of the slump if you take stock of what some economic analysts are saying. That indicator is the jobless claims number — once it peaks, then falls, it’s supposed to signal the bottom of the recession — and as they say, there’s nowhere to go but up!

But that article attracted a lot of cautious responses. People told me to “listen to my spouse” who continues to be skeptical about all this talk of recovery, and who still believes that we’ve got a ways to go with this recession. His view? Got to wring out all the negativity that’s still weighing upon the fundamentals: massive deficit, foreclosures and bad loans, loan defaults, tottering banks, unemployment.

Reviewing The Economic Fundamentals

These last few days though, there appears to be (at least, on the surface) some kind of turning point in the U.S. market psychology, since we’re suddenly seeing the Dow Jones sitting above 9,000 for the first time in 9 months.

The mainstream media is now reporting that the indexes are at their highest levels in 9 months, and what can we attribute this action to? Supposedly, there are three factors:

• A drop in jobless claims (hey, wasn’t that the indicator I was just talking about?),
• Improved profit reports from companies,
• More confidence in the status of the world economy, particularly that of Asia.

So what do you think? As they say, stock market behavior and performance can be harbingers of things to come, particularly with the economy. When the market turns up after a significant weak spell, it may be the sign of an economic turnaround in the near future since stock market trends are said to track the economy some 6 to 9 months in advance. The question here is whether we believe that the fundamentals are improving enough to merit a 9,200 in the Dow Jones, or a 986 in the S & P. My guess is that there are still a lot of you out there who aren’t quite convinced that we’re out of the woods just yet. Here’s why: just take a look at how the U.S. debt has ballooned over time (source: check out this article for more on this sordid matter).

We’re still facing the issues of debt and defaults, and their serious, lingering after effects. Our nation’s financial woes don’t seem like they’re going away anytime soon. So if you acknowledge the underlying fundamentals from this vantage point, then you’re likely to believe that this rise in the market is going to turn out to be one more meaningless bounce in the big scheme of things.

How High Can The S & P Go? Technical Analysis Predictions

But how about we take a peek at what technical analysts are saying on the other hand: since they provide short term reads of the stock market through charts and indicators; their calls are meant more for active investors and traders (those who market time). For the short term, stock traders are seeing a continued bias to the upside based on a potential chart pattern formation called a “head and shoulders” bottoming in the markets that has developed over the past 9 months. For more insight into this, check out the video below to get the perspective of one experienced analyst.

Click this link or the image below to watch the video:

The premise of this video is that there is an opportunity here for the S & P index to hit the 1,200 level (with a minimum target of 1,000) from the current 980+ level. Again, to appreciate this information, you’d have to buy into the teachings of technical analysts, stock traders and chartists. For more on this type of investment focus, check out our posts on how to trade stocks using stock charting tools and stock trading software.

I quake under the enormity of our nation’s situation as I try to grasp the significance of our massive debt problems. So while I’m happy that some of my investments look like they’re recovering quite nicely as they ride the latest market surge, a part of me is bracing for more volatility ahead. And if this market looks any better soon, I may be strongly tempted to lighten my U.S. investment holdings at higher levels (yes, I may just acquiesce to the forces of market timing) as we readjust our portfolio towards a more conservative bent: after all, we’re not getting any younger!

What’s your take on this upward trend?

Great Stock Market Performance, But Will Dow 9,200 Hold?

YNAB Pro Giveaway Code: fibonacci

Your thoughts on the new federal minimum wage?

A few days ago, the minimum wage went up from $6.55 to $7.25 according to the U.S. Department of Labor. The measure affects 29 states while other states already have an equal or superior minimum wage (note that employers are required to pay whichever is the highest: Federal or State). This new federal minimum wage results in an income of $1,160 a month or close to $14,000 a year. Poverty guidelines established for 2009 indicate that for a family of two, $14,750 or less — or for a family of four, $22,050 or less — are indicators of poverty according to HHS (Health and Human Services). It’s even tougher for those in California, where the minimum budget and cost of living for a family of four is $77,069.

The minimum wage measure is supposed to combat poverty but we clearly see through the above numbers that our stalwart politicians in Congress have never and will never have to live on minimum wages. One cannot feed a family of four with this miserable salary so it stands to reason that the only people who might appreciate this latest wage increase are single persons such as students or low-skilled workers (although these days, it seems that more people are willing to work for minimum wage).

Federal Minimum Wage Through History

Let’s remind ourselves of what the federal minimum wage numbers have been throughout history. Here’s a table showing the actual minimum wage between 1939 and 2009 (source: Wikipedia):

And here’s a chart showing the real value of the minimum wage (inflation adjusted) from 1938 and 2009 (source: Economic Policy Institute):

Politics as Usual

The only important caveat in this political maneuver (done obviously to collect sympathy votes) is that the raise in minimum wages may have just the opposite effect of what Congress intended: even worse, recent research has shown that higher minimum wages reduce teenage education levels and decrease workers’ long-term earnings.

Studies also show that the minimum wage does not reduce poverty. Granted, the Heritage Foundation is a very conservative think tank that regularly slams welfare proposals as too costly and ineffective. But they have a somewhat valid argument when they claim that high school students drop out at a higher rate if the pay is more attractive; they prefer paid work to study, believing erroneously of course that they’ll be able to survive with such low wages.

Why Not Implement a Real Minimum Wage?

For the sake of argument, let’s take a neutral position in this matter and base our opinion strictly on facts; as mentioned above, one single individual just might make it with the new wage of $7.25, although the task would be daunting. He or she would need a very cheap room somewhere with abundant public transportation.

But what about families? Of course, a family simply could not survive on such an amount. So why don’t our enlightened politicians offer a “real” (feasible) minimum wage of, let’s say, $25,000 a year? The reason is simple: businesses would not hire heads of households for such a price; it’s too onerous. Instead, they would hire illegal aliens, reduce the number of workers or simply outsource the job.

Main Street vs. Capitol Street

What do you think about retooling the minimum wage policies we already have? Well, it would certainly ignite a big political debate but here are a few ideas: as far as minimum wage workers, wouldn’t it be better to ask the government to differentiate between single workers under the age of 20 and the rest of the population? To help out families with children, how about making it easier for other family members to financially contribute to the household?

Perhaps we could lower the salary of school age workers to make it easier for them to be hired in temporary summer jobs without giving them the illusion of permanency. We could also lower the minimum age to 14, so as to help thousands of poor families who need the additional income. As it stands now, teens under 16 have serious restrictions regarding the hours and places they can work, while teens 16 or older can work as much as they want. For those worrying about their financial situation, here are some suggestions on what low-income earners can do to get off minimum wage.

Are We Eliminating More Jobs?

Many believe that the increase in minimum wage is not the social panacea that many people envision. It can really hurt the job market, especially now that the economy is still reeling from its dismal performance. I believe that our politicians have chosen the wrong measure and the wrong time to increase the minimum wage. Had it happened among general prosperity, few voices would have been heard against the measure. As it stands now, the raise will actually eliminate jobs instead of creating them and provoke a general outcry among the business world; and we can’t really afford that now, can we?

Federal Minimum Wage Through History, Plus Sundry Thoughts

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I recently caught wind of some great things coming down the pike with Mint. They’ve completely overhauled their blog and have turned it into an “online magazine” called MintLife. Just check out the new design!

I love it! It looks great and the content is quite unique, interesting and refreshing, as Mint uses a lot of multimedia forms on their new online magazine. Personal finance has just become more compelling (and attractive) with a lot of visuals — so kudos to the Mint team for coming up with the redesign!

Here is a taste of what you’ll see there. Just check out all the stuff created by WallStats.com and Ross Crooks featured on MintLife:

World Currencies In The Recession

The following picture (Mint Map) shows us how 16 major foreign currencies have fared during this recession, in relation to the U.S. dollar. The percent changes in the value of various currencies (relative to the USD) were calculated from June 30, 2007 to June 30, 2009 and presented in this awesome visual comparison.

Click the image to fetch the big picture:

One Trillion Dollars Visualized

“A trillion dollars is only one tenth of the current economic bailout.” To get some perspective on what this kind of money amounts to, we have the following video, which shows us the economic impact of a trillion dollars. It takes a hard look at how much our government is spending.

 
Even though they paint a withered economic picture through these videos and images, these presentations from Mint are definitely more than just visually appealing, they’re also quite informative! So take a peek at the new blog — I mean ezine — and if you haven’t yet, you may want to try out Mint.com, one of the free budgeting tools that’s available on the web.

And for more on finance, here are some articles I’ve enjoyed reading this week:

Personal Finance Articles

• One Mint: Save to Win
• The Wallet: Surprises of the Recession
• Alpha Consumer (US News): New Words for a New Economy
• Gen X Finance: How to Brew Your Own Beer
• Tough Money Love: Personal Finance Lessons Learned the Hard Way
• Frugal Dad: Leftovers: A Recipe For Food Savings
• My Dollar Plan: The Exponential Power of Delayed Consumption
• Million Dollar Journey: Should We Fund Our Children’s Higher Education?
• Lazy Man and Money: Interesting MonaVie Story
• The Sun’s Financial Diary: Tips for Embracing Green Frugality
• Blog Her: How to Save Money on Groceries? Stay OUT of the Middle Aisles
• The Consumerist: Man Withdraws $190,000 in $20 Bills After Being Denied A Mortgage
• The Cheapskate Blog: Time.com has a money blog called The Cheapskate Blog that I just discovered! Definitely worth bookmarking.

Recent Carnivals

• Best of Money Carnival: Thanks to Wisebread for this great edition, and for selecting my post called Save Your Money By Paying Yourself Last as the runner up for the week!
• Money Hacks Carnival
• Carnival of Pecuniary Delights
• Carnival of Money Stories

World Currencies In The Recession, One Trillion Dollars Visualized

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