I entered the so-called blogosphere about a year ago. The economy was in a tailspin, and few people realized how bad it was going to get. I’d like to think 11 Connects was ahead of the curve… trying to provide solutions to the tough times, versus just hitting viewers with problem after problem. But there’s only so much money-saving advice one can find that doesn’t border on common sense. Most of the recent things that I found to post were basically stories that indicated things were getting better, or finding things that may get worse. Without any clear benefit, I’ve decided to suspend my blogging days for a while. I appreciate all the folks who have commented, or e-mailed me directly. We’ll keep this page active, and continue to provide it as a resource to find low gas prices and foreclosure databases. Happy spending!

By Monica Young.
Special to the Journal.

Dawn Larkins shops with marked concentration, moving carefully down each aisle, frequently consulting from a small yellow legal pad of notes she compiled at home. Her hot pink, zippered, three-ring binder sits in the seat portion of the cart, like a cook would lay out a recipe book on a stand.
Last week at the Harris Teeter on South Main Street, Larkin used coupons for Italian sausage, cheeses, tomato sauce and other ingredients for lasagna. She handed over so many toiletry-item coupons that she could create bags full of shampoo, deodorant and other products for a local women’s shelter.
She saved $102.11. She spent $6.43.
This isn’t a one-time thing. On another recent trip she spent $4 and saved $120. On still another she spent $8.44 and saved $53.88.
For two years, long before the recession created daily headlines, Larkins has been “couponing,“ as she calls it. She spends an hour a day at home at it, and can spend from 20 minutes to three hours walking the aisles during one of her four to five shopping days a week.
In such places as Harris Teeter, Food Lion, CVS, Walgreens and Rite-Aid, people take notice.
“Oh, I get stopped all the time in the stores - at least six people every trip,“ Larkins said. “Last week a lady with two small boys stopped me. She had lost her job, her husband’s salary had been cut by $20,000 and she was starting to coupon. For 30 minutes, I showed the ropes and taught her how to save more.“
Larkins said she got into couponing for the expected reason, to save money. She teaches piano and directs the senior adult choir at Main Street Baptist Church in Kernersville. With two of her three children at UNC Charlotte, she said that the family needed more money to support them. She said that getting another job didn’t fit her busy lifestyle, so reducing family expenditures seemed the way to go.
Overall, said Larkins, who gets giddy talking about her savings, her efforts have reduced her family’s monthly grocery spending from about $1,000 to about $250. Even though Larkins has saved money, she’s also bringing home far more goods, to the point that her pantry and additional storage spaces look like miniature drug stores.
Brett Larkins, 22, a UNC Charlotte student majoring in broadcast journalism while dancing for the Charlotte Bobcats’ Lady Cat dance team, said that she and her brother Jack, 19, a computer science major, know they’ve benefited from their mother’s coupon obsession.
“We sure aren’t complaining,“ Brett Larkins said. “It’s fun to watch. The cashiers seem so surprised to watch the numbers drop when she checks out.“
It’s taken a while for Larkins to develop her level of expertise. Her first forays into couponing, she said, resulted in typical novice errors.
She would go through the Sunday circulars in the paper and clip coupons for the products her family used. Then she would shop that week with those coupons.
As she delved online for more coupons, she discovered there is a science to savvy coupon shopping - a science that results in phenomenal savings for those who follow it. For example, she learned that she had to be willing to try different brands of a product, and that products for which there was a coupon in a Sunday circular are less likely to be on sale the week that the coupon appeared.
In time, Larkins developed her own system. She initially files the entire circular each Sunday rather than immediately clip out the coupons. She then creates detailed lists based on stores’ advertised specials, checking online Web sites and brand Web sites for coupon information, studying store policies and methodically planning each shopping venture.
She has preferred stores that allow for greater coupon savings. Wal-Mart may have lower prices overall, Larkins said, but she discovered she can save more by strategically shopping at her tried-and-true favorites.
Regina Smith is the assistant customer service manager for the Harris Teeter on South Main Street that Larkins frequents. Smith said that Larkins and other serious couponers make a difference for cashiers, who “love seeing how much they save.
“They call the numbers out at the end of ringing it up,“ Smith said. “It gives our kids who work here an example, too. It gives them a head start when they see how much they could save by using coupons, too.“
Around the country, couponing has been a growing phenomenon.
Matthew Tilley is the director of marketing for the coupon-processing division of Inmar Inc., a logistics company based in Winston-Salem that handles nearly all the coupons processed in the U.S.
Tilley said that coupon use has followed the economy. In 1992, the tail end of the last major recession, coupon use peaked with 7.9 billion coupons redeemed. The number fell dramatically through 2006, with 2.6 billion coupons redeemed that year. The number held steady until the last quarter of 2008, when there was a 10 percent increase. The first quarter of 2009 saw a 17 percent increase over the same period in 2008, and the second quarter grew 33 percent over the same 2008 period, he said.
Driving the increase in couponing besides the economy is the Internet.
Kenny Herbst, a Wake Forest University professor of marketing specializing in food psychology and consumer decision-making, said that social networking has made sharing of coupon use a more savvy process for many.
For many, Herbst said, extreme couponing “turns into a scavenger hunt.“
“Even in good times,“ he said, “there are people who like to play this game.“
Brent Shelton, the director of marketing for the 10-year-old Fat Wallet Web site based in Illinois, said that what has changed about couponing are online coupon codes.
In the end, he said, coupons however they are obtained “are used as sales lures by the manufacturers, who see coupons as a great way to spread the word about a product.“
Tilley said that Inmar identifies three types of consumers when it comes to coupons: people who won’t touch them, people who “look under every rock and cranny and who won’t buy anything without them,“ and those like to save but within the time frame they have.
Count Larkin in the “cranny” category.
Between the clipping, the Internet and the organizing, Larkins estimated that she spends an hour a day on her couponing. She’ll typically sit down at her sun-drenched kitchen table, which overlooks an expansive lawn and pristine backyard pool.
“I don’t live a frugal life. I’m not deprived,“ Larkins said. “I just use that money on other things now.“
Her husband, also named Jack, said he thinks that his wife likes couponing for the challenge. “It’s been really beneficial, especially for supplies for the kids. Our toiletries are essentially free. It’s fun to try different stuff, too; although some of it you can understand why they are giving it away free,“ Jack Larkins said with a laugh. “What I like, though, is how we’ve been able to help other people more with what she is doing.“
Dawn Larkins will take anyone interested in learning her methods for free one-on-one tutorials. Her efforts meshed with those of a fellow church member, Bruce Butcher, who has started a food pantry, and with Main Street Baptist’s minister, Mike Willard.
The three have formed a ministry called “Caring with Coupons.“ Larkins will teach a free seminar Aug. 9 at 4 p.m. to show people how to maximize their purchasing power and thus increase what they are able to donate to the church food pantry.
“Other people can reduce their grocery bill by 80 percent, too. This will let them do more with their buying power, including giving more to those in need,“ Larkins said.
Audrey Crozier, 67, tagged along with Larkins one day to learn couponing strategy.
“I’m so enthused. I can save so much more personally, but I can give more to our program at church, too,“ Crozier said. “There are so many hurting people and now I can help more.“

The language of couponing.
Here are some common terms in the couponing world.
• B1G1 or bogo: Buy one, get one free.
• Blinkies: Coupons dispensed near the product, usually from a “blinking” red box.
• catalina: A coupon dispensed at the register when a product is purchased, either at end of receipt or separate.
• IP: A coupon printed from off the Internet.
• MIR: Mail-in rebate.
• OOP: Out of pocket.
• stacking: The art of stacking coupons in a certain order so that they will ring up how you want them to.
• tear pad: A pad of refund forms or coupons found hanging from a store shelf or display.
Source: Dawn Larkins, The Dollar Stretcher.Com Website.
Couponing tips.
Dawn Larkins, who has been couponing for a couple of years, has suggestions for people who want to learn the art and save more:
• don’t fall in love with a particular brand: Try products for which you have coupons. You will be surprised to find new things you like.
• Buy two sunday papers: If you buy the paper at a store, you can guarantee the weekly circular coupons will be inside. The most common circular coupons are Red Plum, P&G and Smartsource.
• don’t immediately clip out the sunday coupons: Stores tend not to put items on sale that are in a particular week’s circular. But a few weeks later a store frequently will put the item on sale, which adds to the savings when you use the coupon.
• check websites: Websites such as http://www.coupons.
.com and http://www.hip2save.com alert people to upcoming deals and the best coupons. The sites tell you which circular had the best coupon for items on sale.
• plan at home: If you try to figure out what you’re going to get when you’re at the store, you’ll be frustrated.
• be ready to shop: Shop the first day of grocery sales, which is usually Wednesday or Thursday.
• know your store policies: Larkin has store policies printed and takes them with her. For example, the first 20 coupons at one store are doubled up to a certain amount. She makes sure her first 20 coupons total less than that amount before she hands over her higher dollar coupons.
Source: Dawn Larki.

Some movers and shakers are here this week (including the President) to talk about health care reform. What are your questions? E-mail us at newstips@11connects.com.

We’ve been looking into RV’s (as the title of this blog would imply). We have to buy a used one—a news person doesn’t make enough to plunk down $80K on a house on wheels. But the experience has been disappointing so far. One local RV dealer said they receive used RV’s every now and then (presumably when someone trades in an old one for a new one), but they are snapped up instantly. Craigslist just doesn’t have a big selection—not here anyway. Have we stumbled onto a business that keeps on simmering despite the economy (the used RV business)? Or is that exact opposite at play? If you’ve had an experience with motorhomes lately, I’d love to hear from you.

By: RICHARD MULLINS

Media General News Service

It’s not often a software company hits the big time with a slogan like “Honestly, don’t download this. It’s just a blank screen.“

For the last week, however, the “Mirror Free” iPhone app from Tampa-based Inner Four has been in the top-10 most-downloaded list of free iPhone apps with that very description. The program is just an image of a mirror frame and a blank screen so you can (kind of) see your reflection.

The program started almost as a joke when John Schwartz of Westchase-based Inner Four spotted another company’s 99-cent mirror application and thought they were silly to charge for a blank screen. In about an hour, he made the Mirror Free program and uploaded it to Apple.

As their description on the Apple iTunes says, “Don’t hate us for a useless app. Love us for saving you $.99.“ The app doesn’t even have great reviews. Currently, users give it one and a half stars.

Nevertheless, the app exploded in popularity and hit the No. 1 spot in Apple’s rankings last week. Currently, it’s still in the top 10.

This week, The Wall Street Journal featured the oddball success. Though the app is free, the company generates revenue from ads above the mirror frame, such as CheapFlights.com, and Yellow Pages.

“We put it up there more or less as a joke,“ said David Rajala, chief executive of Inner Four, which now has about 150 different iPhone apps in its catalog.

Free mirrors aren’t the only thing InnerFour has to offer. Among their apps:

—Cat Toss. As the name implies, players flick their fingers on the iPhone’s screen to toss cats, or dogs, for distance.

—BullCrap Detector, which looks like a lie detector, but allows phone owners to pre-set questions to persuade friends it’s authentic.

—Don’t Get Married, where players put their finger on the phone screen and try to avoid the flying wedding rings.

—The Most Annoying App Ever, that shows a sequence of ugly designs or maddening games, like “click here” buttons that keep popping up.

One recent app, the company pulled from production: “TeenTorture,“ that makes a high-pitched squeal that only kids can still hear. After a bit of controversy, it was renamed “Teen Hearing Test,“ and re-launched.

Oddly for Rajala and his company, Apple doesn’t share much information about how well their apps sell. The company’s first gauge of success is when they see their app in a Top 10 list. Blockbuster sales vary, but Rajala estimates a No. 1 app might sell 100,000 copies over a few days. Eventually, Apple wires money from the sales directly into Inner Four’s account.

Inner Four has some company in Tampa for in the entertainment-only category. The app company Mad Mobile launched their program “Framerz” with appearances on American Idol. That app takes photos from your phone and customizes them to look like rock stars, angels, jail inmates, rappers or Rastafarians.

As the proud new owner of an iPhone… I know the fuss is about. It’s the device that seemingly does everything. I was a Mac user long before I sucked it up and bought an iPhone, so I’m approaching this from an obvious bias. But Apple’s 2Q earnings (which you can find with a simple Google search—they are stunning) prove a very good point: make a product people want and it doesn’t matter how nasty the economy is: people find a way to buy it. The new iPhone 3GS was a smashing sales success. People waited in line, and then continued to purchase it long after the original release. We are quickly moving to a mobile world, and the iPhone is certainly positioning itself as the must-have mobile device. I wish I could invent a product that people want so badly.

BY DAVID RESS

Media General News Service

Despite several state-ordered rate cuts during the past 15 years, credit insurers still have been taking a larger chunk of consumers’ dollars for their expenses and profits than allowed under state law.

Now, the State Corporation Commission is trying once more to prevent overcharging on credit insurance — the optional coverage consumers buy so their creditors are paid if the consumer dies or is disabled.

This month, the SCC ordered its sixth rate cut in a row for one variety of credit insurance and its fifth rate cut for a second.

More than 40 cents of every dollar Virginians pay for credit insurance has been going to insurers’ profits and overhead for much of the time since a 1993 state law tried to cap them in an effort to keep consumers from paying too much.

The overhead includes big commissions the insurers pay lenders and retailers for selling the coverage, as well as salaries, office and finance expenses.

With the latest cuts, which take effect Jan. 1, the coverage now can cost as much as $34 on a $1,000 loan.

Despite the small premiums, millions of dollars are at stake, typically paid by less-well-off consumers who don’t have other life or disability insurance.

Last year, Virginians paid $76 million for credit insurance, filings with the SCC show.

A state law says insurers are overcharging if their profit and overhead expenses exceed 40 percent — but those amounts have exceeded that level routinely since the law took effect in 1993.

“Forty percent for expenses and profit is more than generous. . . . Rates need to come down more,“ said Irene Leech of the Virginia Citizens Consumer Council, a nonprofit consumer advocacy group.

She said insurers’ large profits and big commissions show the companies are charging too much for the coverage. Many consumer advocates believe consumers are overcharged when insurers’ profits and overhead exceed 25 percent of premium revenue.

During the past three years, profits and overhead averaged 58 percent for one type of credit insurance — the coverage that pays off loans if a borrower is disabled — insurance company filings with the SCC show. Last year, insurers sold $44 million of this kind of coverage.

Profits and overhead for credit life insurance — which pays off loans when a borrower dies — averaged 43 percent during the same period, the filings show. Insurers sold $33 million of credit life insurance in Virginia last year.

Among the dozen most active insurers — those doing more than $1 million a year in business in Virginia — the profit and overhead figure rose as high as 89 percent last year, commission filings show.

One firm lost money — that is, collected less than its expenses — but otherwise, the lowest profit and overhead figure among those dozen most active insurers was 21 percent.

This month, the SCC ordered rate cuts of 4.7 percent for credit life insurance to take effect Jan. 1.

This will reduce the premium for coverage based on monthly outstanding balances, the kind of coverage used on credit cards, to 52.71 cents a month per $1,000 of debt from 55.3 cents.

The cuts will reduce the cost of single-premium coverage on a loan to 33.65 cents per $100 of loan from 35.3 cents.

The commission reduced rates for the 720 varieties of credit accident and sickness policies by 27.4 percent across the board.

For the costliest coverage, which runs for 10 years and begins payment if a borrower is sick or disabled for seven days, the rate cut will save a borrower $13 on a $1,000 loan.

Leech said those cuts aren’t deep enough, especially because rate cuts so far haven’t reduced insurers’ profit and overhead.

After the previous rate cut, which took effect in 2007, the proportion of consumers’ payments that went to insurers’ profit and overhead still increased by 2.5 percentage points for credit life insurance and 5.3 percentage points for credit accident and sickness insurance, filings with the commission show.

The rate cuts that take effect Jan. 1, like all the others that preceded them, are supposed to bring profits and overhead down to the legal 40 percent level.

But William F. Burfeind, executive vice president of the Consumer Credit Insurance Association, a Chicago-based trade association for credit insurers, said he’s concerned that the cuts might be too deep.

He said credit insurers keep missing the target because their biggest expense — the claims they pay to lenders when borrowers die or are disabled — is declining rapidly.

The reason, he said, is that people are living longer and remaining in better health.

“Other costs are not coming down,“ he said, adding that insurers need more revenue to cover a range of fixed costs, such as staff and facilities, that can’t be trimmed in size to match the decline in claims.

“We think it’d be better to say if claims fall a nickel, rates should fall a nickel,“ even though that increases the proportion of revenue covering nonclaims expenses, he said.

The association says the amount by which insurers missed the target in credit life is statistically insignificant.

Cutting the credit accident and sickness rates as much as the SCC ordered for Jan. 1 “will transform viable insurance products into industry losses,“ the association said in a formal filing this month.

Since 1993, the SCC has cut credit life insurance rates by 30 percent and credit accident and sickness rates by 43 percent.

David Ress is a staff writer at the Richmond Times-Dispatch.

By TONY HOLT

Hernando Today

BROOKSVILLE The local golf courses have been more wide open lately.

Fewer players are being seen each day teeing off, even at those acclaimed courses known for their elaborate designs and landscapes.

The economy has made even the most avid golfers curtail their time on the greens.

Those northern residents who own vacation homes in the area for the purpose of playing golf are looking to sell those properties because they can no longer afford two houses.

Those who play golf five days per week are being seen two or three times per week. They don’t want to keep going to golf shops to buy more balls and tees.

Vacationers who typically spend 10 or more days playing at The Dunes or World Woods are only staying for half the time compared to years past.

Those are just some of the observations from local golf course managers.

“You can see people who normally come in are not coming in as frequently,“ said Scott Wyckoff, the head golf professional at World Woods Golf Club in Weeki Wachee. “People need to have an out during these tough times. You might see them cut back on their golf, but they don’t necessarily cut it out.“

Last month, Spring Hill Golf and Country Club and Seven Hills Golfers Club shut down due to financial troubles.

Eighteen months earlier, Whispering Oaks Golf Course in Ridge Manor also closed.

Golf courses aren’t the only ones hurting. Retailers have noticed a sales slide also.

Callaway, one of the leading golf club makers in the world, announced Thursday its second-quarter earnings were well below 2008 levels. Consumer spending has not bounced back.

Chris Pursell, co-owner at Golf Etc. in Brooksville, has noticed it also.

“Customers are worried about spending money right now,“ he said. “They have that nervous feeling.“

He, like many other golf shop owners, keeps his customers informed on the local courses. They fill him in also on what goes on at the private clubs. Mostly all of them have noticed fewer people, he said.

Car owners have been more inclined to fix their cars these days than to buy a new one. The same applies to golfers, who want to repair and reshape their existing equipment rather than splurge for a new set of irons and woods.

“Our business has dropped down some, but we’re seeing more repairs,“ Pursell said. “They come in to get their irons reshafted rather than pay for new ones.“

It is difficult to gauge business during the summer because the snowbirds have left and most people avoid the greens whenever there is the threat of rain.

The heavy rains earlier in the week kept the golfers away from Hernando Oaks Golf and Country Club, said manager Jim Hasner.

“Considering the times, we’ve been stable,“ he said. “It didn’t rain (Thursday) or (Friday), but the six days before that we got 7 inches,“ he said. “We felt things were getting stable before the rain.“

Golf courses also are taking a page from the restaurant industry. As a means to lure more customers, they are offering unprecedented discounts.

Hernando Oaks will offer a three-month trial membership in the fourth quarter. Hasner hopes it will boost memberships heading into 2010, at a time when the economy is expected to begin its slow recovery.

“We’re going to try to fill some dents with golfer putty,“ he said.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

BY BOB STUART

Media General News Service

Peter Harris has seen critical junctures before.

The businessman arrived at one six years ago with his Staunton company facing global competition in the production of industrial blades.

“We refocused and strategically became a medical device and diagnostics company,‘’ Harris, president and CEO of Cadence, Inc., said Thursday.

The result: Sales at Cadence soared from $9 million to $30 million to $35 million, with only 20 percent coming from industrial blades sales.

Cadence employs 230 companywide, including 120 in Virginia.

Harris’ small business is the model for the kind of job creation politicians at the top and bottom of both gubernatorial tickets say is needed to revive Virginia’s stalled economy.

Sounding on a popular Republican theme, Democratic lieutenant governor candidate Jody Wagner said during a Waynesboro stop small businesses need less regulation and more seed capital to get off the ground. Those businesses, she said, provide most of the jobs.

Republican Lt. Gov. Bill Bolling wants to cut regulation and offer $1,000 tax credits to all businesses for each of the 50 new jobs they create or 25 new jobs in distressed areas.

Harris said less regulation and less taxes will help small business more than any other government policy.

“By keeping regulations down and taxes low businesses will thrive. Americans are the most productive and ingenious people on the planet,‘’ he said.

Harris said the key to Cadence’s survival is to constantly evolve, and not assume things will always stay good.

Amanda Huffman, the city of Staunton’s assistant economic development director, said small business development is becoming an increasingly important part of that department’s strategy.

Huffman said small businesses create local jobs and tend to keep their money in the community and be more philanthropic.

“They support the United Way and local sports,‘’ she said.

Huffman said Staunton is focused on attracting a wide variety of businesses from manufacturing to distribution, retail, commercial and office.

Bob Stuart is a staff writer for The News Virginian in Waynesboro, Va.

By Ray Reed

Media General News Service

SOUTH BOSTON - On the same day Appalachian Power Co. announced that it needs its second large rate increase in two years, about 65 people who are ready to redesign America’s energy usage from the top down shared their prospects for business partnerships Wednesday.

“Consumers are going to be amazed by the changes that are coming in the next 10 years,“ said JG Staal, who is helping start a Richmond-area company that wants to conserve electricity by letting businesses and homeowners know when a refrigerator or machine is using too much current.

Rising electricity rates will fire up consumer demand for more details on how they’re using power, said Staal and other electricity entrepreneurs attending a “Show Me the Energy Money” conference at the Virginia Tech Modeling and Simulation Center.

Consumers now get a bill from the power company that doesn’t tell them how they used the kilowatts they’re paying for, said Lynchburg native Katherine Hamilton, who is president of GridWise Alliance, a consortium of electricity providers and users that seeks to changes habits and practices that waste power.

Solutions could be as simple as unplugging an unused TV or computer during the day, because many devices draw power even when they’re switched off.

A desire to use those solutions could be driven by a need to save money and an instinctive, competitive need to be as energy-conscious as others in a neighborhood.

Information about a home’s energy use would be provided to the homeowner, under Staal’s concept, along with information about average power use in similar residences.

That information would be collected when Staal’s device, installed in a business or home’s electric panel, transmitted the information to an IP server that compiles and analyzes it.

At the other end of such a transaction could be someone like WattShifters, another Richmond-area company represented at Wednesday’s conference.

Stephen Walz, Gov. Timothy M. Kaine’s senior adviser for energy policy, said he thought WattShifters and Staal’s venture could form separate parts of an energy-saving concept.

WattShifters says it wants to give electricity providers such as Appalachian Power data that would help them meet peak-demand requirements in new ways that reduce the need for bigger plants.

Electricity wasn’t the only source of energy represented at the conference, which was held at a Virginia Tech facility built with Tobacco Commission funds in the Riverstone Technology Park.

Companies that are trying to create energy from algae, wind, solar and other renewable sources also attended.

Federal stimulus funds that are just now becoming available for energy-related projects could be a source of capital for entrepreneurs, two conference speakers said.

Although stimulus dollars have started slowly, “there’s going to be a lot of money flowing out,“ said Henry McGuire, a vice president with Tetra Tech, a global engineering company that is the largest wind-services company in the United States.

Coming with that money will be a federal demand for accountability about how many jobs it creates. Information about the funds’ use will have to be transparent and made available to both the government and the public, McGuire said.

“Every single piece of work will be tracked,“ he said.

Reed is a staff writer for The News & Advance in Lynchburg.

The link that I have is jibberish… so my apologies to CNN. This is very timely since we’ve had scams-a-plenty around here lately, with another scam story we’re working on for tonight at eleven.

By Gerri Willis, CNN personal finance editor

NEW YORK (CNNMoney.com)—According to the Better Business Bureau, more and more people are susceptible to schemes that prey on people looking for employment. The long-term unemployed may become desperate; certainly they’re vulnerable. Creditors may be knocking at their door.

1. What’s going on

Some common schemes include having to pay for a credit report to even be considered for a job. You may be asked to fill out personal information on what is, in reality, a fake job application form. Or there may be a fee charged for a background check.

Scam artists may try to get victims involved in a money laundering scheme involving counterfeit checks.

Scammers may try to get people involved in work at home scams where people have to pay money upfront for services that are never delivered.

2. Know the red flags

Here are some signs to watch out for. First, beware of spelling or grammatical errors. Most online fraud is done by scammers who are located outside the U.S. And their first language usually isn’t English.

Be wary of requests for your Social Security number. And don’t believe any claim that you can get rich quickly.

3. Use care when posting your information

You shouldn’t have to worry about using online job sites like Monster.com or Hotjobs.com. Just be careful what kind of information you release. Monster.com has a feature where you can keep some of the info on your resume private. But realize that even the most innocent information can compromise your identity.

Even where you graduated can present a problem because some thieves may try to access your student ID number—which COULD be the same as your Social Security number. Don’t put down your address on your resume; a potential employer isn’t going to be sending you anything through snail mail just yet.

If you have any suspicions, make sure you report it to the Better Business Bureau at BBB.org.

—CNN’s Jen Haley contributed to this article.

By: MICHAEL SASSO

Media General News Service

In the classic wedding vows - the ones with “for richer, for poorer” – there’s no mention of the best time to divorce.

But one divorce lawyer is trying to fill the gap. His suggestion: If a man’s going to leave his wife anyway, the recession might be the time to do it.

Income, business assets and other holdings are probably way down in value now, attorney Joe Cordell reasons, so the husband will probably feel less pain in splitting them with his spouse.

Cordell, who is advertising heavily with male-oriented talk radio and sports programs, insists he’s not encouraging divorce. He’s just pushing a pragmatic approach if a breakup looks inevitable.

“It’s not a controversial point to make that if a guy’s going to be in front of a judge, it’s going to be advantageous if it’s when his assets are at an ebb, rather than a peak,“ Cordell said.

Based in St. Louis, Cordell specializes in representing men in divorce cases and custody disputes. He oversees 21 legal offices around the country, including one he set up six months ago in Tampa’s West Shore area. He has two attorneys in Tampa.

He voices his own radio ads, noting he’s been through divorce himself, and in one of them he suggests now might be the right time.

In a strong economy, Cordell said, men frequently can’t believe their assets are valued at such a high level when it comes time to split them.

The converse of that situation may work in their favor.

“If a guy is relatively impoverished, that’s going to give him an advantage in his arguing that his wife should take on more of the debt,“ Cordell said.

Some rival family lawyers in Florida acknowledge the message makes some sense, even if they’re not comfortable with the pitch.

Strategizing is common whenever someone goes for a divorce, and the recession may play a part in it, said Chris Ragano, a Tampa family attorney.

But women can strategize, too, said Ragano, chairman of the Hillsborough County Bar Association’s family law section. Should a wife file for divorce sooner, rather than later, to prevent her husband’s assets from falling further in value?

Scott Rubin, a family lawyer in Miami and past chairman of the Florida Bar’s family law section, agreed that a woman can also use slumping net worth to her advantage.

She might have been laid off from a job and argue she needs additional alimony or child support, Rubin said.

Cordell’s aggressive ad spin comes at a time when the business of divorce is down.

One theory is that couples feel they can’t pursue it now because they need the dual incomes, Rubin said, under the theory that two can live cheaper than one.

In Hillsborough County, there were 5,752 filings for divorce in the 12 months ended June 30. That’s down 12 percent from the 12 month period ended June 2008, when 6,560 divorce cases were filed.

Still, Cordell’s campaign is stirring up the Bay area’s family law business, Ragano said.

Family lawyers usually aren’t big advertisers and some local attorneys resent the radio pitches.

The feeling is, “How dare you come into our area and do the blitzkrieg of advertising and corner the market, and you’re not even a Florida attorney,“ Ragano said.

So far no one is saying publicly it violates Florida Bar ethics or advertising rules and the bar has no open investigative files on Cordell, according to a representative.

It’s a bold approach, Cordell acknowledges.

“I don’t think an ad like mine has ever been done.“

Someone smarter than me (that leaves about the entire world) is going to have to explain to me why the following AP news minute doesn’t reinforce my belief that the price of gas is all based on speculation:

CAMARILLO, Calif. (AP) - It’s the summer driving season and the
price of gas has dropped. The national average price of gasoline
fell about 10 cents a gallon during the past two weeks to $2.56.
That’s according to the Lundberg Survey of fuel prices released
Sunday.

In the past few weeks, nothing has changed. The demand for gas hasn’t increased. It hasn’t decreased. But the price of oil and gas has gone down dramatically. Why? Because investors don’t think the global economy is improving like they hoped when they ran up prices above $70 a barrel a few weeks ago. Why does this matter? Because every oil executive I’ve ever heard on television has blamed the price at the pump on us—the consumer. Too much demand they say. Really—they should have said “speculation of demand.“ Is it the same thing? Again, I’m no smart person—but you fix the commodities markets and we should see some stabilization here.

This is a blog of a blog (how original, huh?). Courtesy of Al’s Morning Meeting by Al Tompkins

Right smack in the midst of a recession, Americans have started a new habit: saving money. The savings rate in May was the highest it’s been in 16 years. Bloomberg reported:

“While the trend will put the country’s finances in better balance and reduce its dependence on Chinese investment, it may also restrain economic growth in 2010 and beyond, said Lyle Gramley, a senior economic adviser with New York-based Soleil Securities Corp. and a former Federal Reserve governor.

“‘There’s been a fundamental change in people’s behavior,‘ he said. ‘It will affect the economy for years.‘“

“Government data [released June 26] showed that the household savings rate rose to 6.9 percent in May, the highest since December 1993, as personal spending increased less than incomes. The rate in April 2008 was zero.

“Americans’ newfound frugality is pinching airlines such as Chicago-based UAL Corp., which is cutting staff amid dwindling demand for leisure travel. Donations to charities dropped last year for the first time since 1987, and they’re in danger of declining further in 2009.

“Banks are benefiting. Deposits grew 1.7 percent in May, the ninth-biggest monthly rise since 1973.“

Bankrate.com lets you compare savings, CD and other cash investment rates.

Coupon clippers are going wild these days, InternetNews.com found:

“Online coupon sites saw strong growth for the month of May, signaling a trend being spurred on both by the recession as well as by the “modern” digital coupon demographic.

“The coupon category posted a particularly strong month, surging 19 percent to 34.7 million visitors to lead as the top-gaining category in May, according to a comScore study [PDF] released (Friday) researching traffic at the top 50 Web properties.

“Coupons Inc., which includes Coupons.com, captured the top position in the category with more than 15 million visitors, a gain of 85 percent from the previous month. Eversave.com ranked second with 3.8 million visitors, followed by RetailMeNot.com with 3.5 million visitors.

“The news comes at a time when online coupon use is experiencing unprecedented growth, as a new generation of bargain hunters—those who do not subscribe to newspapers or clip physical coupons—turn to the Internet for the convenience and vast selection realized by the digital format.“

By Christian Kloc.

JOURNAL REPORTER.

As the economic downturn grinds on, more people are cutting back on treatment for anxiety, depression and substance abuse, local mental-health advocates say.

And those who continue to get care say they worry about the toll that the economy is taking on them.

In February about 33 percent of clients of Family Services Inc., which provides counseling and other treatment on a sliding scale in Forsyth and Davie counties, had recently experienced a job loss or reduction in income, said Al Renna, the president of Family Services. That jumped to 40 percent in June.

Also troubling. Renna said, is the growing number of people who discontinue their treatment because they can’t afford it. About 25 percent of the agency’s clients ended their treatment because of money concerns in February. That number grew to about 29 percent in June.

Renna said he expects the drop in clients to continue as more people lose their jobs and health insurance.

And for the recently unemployed, depression and anxiety can make it harder for them get back on their feet, Renna said.

“Job loss is a wound,“ he said. “And it’s a wound on the entire family.“

Ginny Mills, a counselor at the Trinity Center in Winston-Salem, called the current economic climate a “perfect storm,“ because clients put off counseling when they are most vulnerable.

Trinity Center offers faith-based and traditional treatment programs for a variety of issues. The center tries to accommodate clients who struggle to afford treatment.

“Their need for it (counseling) is increasing in direct response to circumstances that are out of their control,“ Mills said.

Joan Wilkins sees a steady stream of clients at her private psychotherapeutic practice in Winston-Salem.

Many of her clients have told her they are worried about their jobs and finances.

“I’ve been through several economic crises,“ she said. “This one’s different. It’s different for everybody.“

Clients who were “staying ahead of the tidal wave” are beginning to feel the effects of the economic decline, Wilkins said. “People are starting to have a little bit more awareness that there’s going to be good times and bad times, and to plan accordingly.“

That means working overtime, taking less time off for vacation and putting off retirement, which can contribute to anxiety and depression, Wilkins said.

Wilkins said the downturn gives her clients a chance to tune in to the needs of others and make more reasonable financial decisions.

“It’s not a cliché to say count your blessings,“ she said.

Stephen Kramer, the medical director of adult psychiatry at Wake Forest University Baptist Medical Center, said he sees some patients who are dealing with job insecurity for the first time in their lives. “There’s that sense of unsettlement,“ he said.

While they do not have serious psychiatric disorders, he said, it is important for them to seek help.

“If you’re less depressed and anxious, your body functions better,“ Kramer said, noting how treatment can also aid financial recovery.

About 1.4 million state residents lack health insurance, according to a report by the N.C. Institute of Medicine. And that number is growing. The state unemployment rate was at 11.1 percent in May, meaning about 500,000 people were out of work and looking for jobs, according to the N.C. Employment Security Commission.

Those who lack insurance that covers mental-health care are looking for free or low-cost treatment, staff members at the Mental Health Association in Forsyth County said.

Support groups are a popular way for people to iron out problems by sharing them with others, said Pam Forrester, the program coordinator for the Mental Health Association. She coordinates support groups, educational programs and volunteer services.

For people who are stressed out by the economy, “having a place where they can freely discuss that is important,“ Forrester said.

“A lot of people do say things like, ‘At least you’re not alone,“‘ she said.

However, she cautioned that the groups should not replace professional or clinical therapy.

n Christian Kloc can be reached at 727-7270 or at ckloc@wsjournal.com.

.

Dealing with stress.

Here are some tips on dealing with stress:

• Try to keep things in perspective.

• Strengthen connections with family and friends.

• Exercise to help relieve stress and anxiety.

• Get help from a health professional if you need it.

Source: The Substance Abuse and Mental Health Services Administration of U.S. Dept of Health and Human Service.

This was a Q & A in the Wall Street Journal:

Q. I have heard you could sell the tabs that are on soda cans. Is this true? - D.D.

A. Rumors about valuable soda-can tabs have been going around for so long that it’s not even clear how they started, but the truth is that the tabs from soda cans have no extraordinary value that make them worth collecting.

To a recycler, the aluminum in the tabs has the same value as any other scrap aluminum. According to the Urban Legends Reference Pages at http://www.snopes.com, “A million pull tabs have a recycle value of about $366. ... To put this in even clearer perspective, 100 pull tabs have a scrap metal value of about 3 1/2 cents.“ Sometimes the rumors about the tabs take the form of assertions that they can be traded in for time on dialysis machines for kidney patients, or chemotherapy treatments for cancer patients. This also is untrue.

As Snopes.com says, “No charitable organization will pay out a premium (in cash, goods or services) for pull tabs from aluminum cans. Some of them will indeed accept donations of pull tabs, but all they pay (or receive) in exchange for those tabs is their marginal value as scrap aluminum. Anyone gathering pull tabs for charity would do far better to collect whole cans; accumulating nothing but pull tabs is like eschewing quarters in order to collect pennies.“

I’m sandwiched between funeral leave (my grandfather passed away last week in St. Croix—as funerals go, this was a great place to have one) and a trip to Florida this weekend (my father-in-law’s birthday). Last week, I posted what I thought was a blistering review of the way an unnamed airline treated my attempts to secure a bereavement fare. I ended up shelling out almost $900 for the flight. Now I see where flights on Delta have sunk to $179 one-way (with fees, it’s about $410 round-trip).

Enjoy:

From Atlanta, GA (ATL) to: Each-way Sale Fare* based on round-trip purchase
Barbados, Barbados, BB (BGI) $179
Curacao, Netherland Antilles, AN (CUR) $229
Freeport, Bahamas, BS (FPO) $119
Liberia, Costa Rica, CR (LIR) $259
Managua, Nicaragua, NI (MGA) $189
San Juan, Puerto Rico, PR (SJU) $89
San Salvador, El Salvador, SV (SAL) $199
Santiago, Chile, CL (SCL) $359
Santo Domingo, Dominican Republic, DR (SDQ) $139
St. Croix, Virgin Islands, VI (STX) $179
St. Maarten, Netherland Antilles, AN (SXM) $179

My grandfather passed away in St. Croix this weekend. My family is holding a memorial service later this week. An airline that will go unnamed (bloggers are getting sued left and right these days) is one of two carriers that flies to this specific U.S. Virgin Island. Since I have frequent flier miles with said airline, I decided to give it a shot. My father was the first to go. He was told that said airline was re-instating its bereavement fair on 6/23/09. Even though he flew to St. Croix on 6/21/09, a kind-hearted supervisor gave him the fare anyway. His ticket went from $1,200 to $700. So I called said airline later on 6/21 (same day my father did). I couldn’t fly out of Atlanta with him because of work scheduling issues. So I aimed for 6/24/09 to 6/29/09. After 45 minutes, the lady said that she couldn’t override the fare like the other supervisor did. I would have to pay $800 if I wanted the ticket now. Since the bereavement fare knocked $500 off of my father’s ticket, they suggested I call back Sunday. After 2 hours on the phone Sunday, they suggested I call back today (Monday). I did. The bereavement fare is now $1,204. So I wasted 3 days on the phone, and ended up paying a full third more for the ticket by following their advice.

By departure gates and so forth, you can probably guess the airline. The customer service folks were all very nice. But geez, you’d figure they could have some latitude for adjusting fares based on the agony they put their customers through.

This is an interesting story from our pals at CNN:

Posted by Carla Fried
June 16, 2009 2:59 pm

“Last week Senator Johnny Isakson introduced legislation that would extend a $15,000 tax credit to any and all home buyers. And I do mean any and all. The current maximum tax credit for home buyers is limited to $8,000 for first-timers with adjusted gross income below $75,000 ($150,000 for joint filers). The Republican senator from Georgia — who made his fortune as a real estate broker, I should point out — wants to swing Treasury’s doors wide open. His bill nearly doubles the maximum credit, doesn’t have an income cutoff and isn’t limited to making home-buying more affordable for first-timers.“

“ If this legislation passed it would be at an estimated cost of more than $35 billion for taxpayers. “

What do you think? Would this spur you non-first-time homebuyers into action?

By Sharon McBrayer

Media General News Service

MORGANTON - The economic recession has affected just about every aspect of life for the common person.

For some, it’s spilling over into death.

Because of the tough times, some people are finding it hard to pay for funerals or cremations, so they are leaving the remains of loved ones unclaimed.

If that happens, it is the county’s responsibility to take care of the bodies and pick up the cost.

It’s happening more and more, said David Smith, director of Burke County Department of Social Services.

In 2008, social services had two unclaimed bodies, he said.

Since January, the department has handled seven unclaimed bodies, Smith said.

If a body is unclaimed after 10 days, social services is contacted, Smith said.

Social services tries to find someone who can claim the person, Smith said. Generally, if someone dies at a hospital, there is a next-of-kin listed. Social services may also have a record of the person.

However, even if there are family members around, Smith said he’s had some tell him they just don’t have the money to pay for a funeral or cremation and, therefore, don’t claim the body.

Social services has a contract with Heritage Funeral Service & Crematory in Valdese to handle unclaimed bodies. Each one costs the county $300.

Andy Thompson, co-owner of Heritage Funeral Service & Crematory, said after the funeral home opened its crematorium in May 2008, social services started contracting with them to perform cremations for unclaimed bodies.

Thompson said if they receive a call from social services about an unclaimed body, they pick up the body and it is held at the funeral home for 10 days. That allows time for someone to come forward to claim the person.

If that doesn’t happen, then the body is cremated, but the funeral home is required to have a death certificate and a signed cremation authorization form. That form is either signed by a next-of-kin or someone from social services before a cremation occurs, Thompson said.

“Even if they’re not claimed they need to be treated with dignity,“ Thompson said. “Everyone deserves some kind of final disposition.“

The cost of the cremation is $300, which covers the expense of picking up the body and the natural gas used to operate the crematorium, Thompson said. Social services pays the cost.

After the body is cremated, the funeral home holds the remains for another 30 days, which is longer than state statutes require, Thompson said.

If there is someone to claim the remains but they don’t have the money to pay for the cremation, the funeral home allows them to pick up the remains. If no one claims the remains, they are buried, Thompson said.

So far, only one person’s remains haven’t been claimed since the funeral home opened the crematorium, Thompson said.

Sharon McBrayer is a staff writer for The News Herald in Morganton.

A few months ago, I wrote about the dangers of deflation. In many ways, deflation is more of a threat to the economy than inflation. It would seem deflation worries have now subsided. But Wall Street’s big stock rally has cooled in recent weeks, with most signs pointing to increased worries about inflation. This is still a major threat, particularly down the road once the economy is off its knees and on its feet. But for now, this story from USA Today finds the inflation threat is being held in check… for now (http://www.usatoday.com/money/economy/2009-06-17-consumer-price-index_N.htm?csp=34):

By Christopher S. Rugaber, AP Economics Writer
WASHINGTON — Consumer prices rose less than expected in May, fresh evidence that the recession is keeping inflation in check.
The Labor Department reported Wednesday that the consumer price index rose a seasonally adjusted 0.1% last month, below analysts’ expectations of a 0.3% rise.

Excluding volatile food and energy costs, so-called “core prices” also increased 0.1%, matching expectations.

In a second report Wednesday, the Commerce Department said the current account trade deficit, broadest measure of the nation’s trade, dropped to $101.5 billion in the first quarter, a 34.5% decline from the deficit in the fourth quarter. It was the lowest current account deficit since the final three months of 2001, when the country was mired in the last recession.

Low inflation enables the Federal Reserve to keep its key short-term interest rate near zero, where it has been for months.

This is the column that I mentioned in yesterday’s blog. Enjoy! (http://money.cnn.com/2009/06/12/technology/love_online_video.fortune/index.htm?section=money_topstories)

By Jia Lynn Yang, writer
June 12, 2009: 10:47 AM ET

NEW YORK (Fortune)—There has perhaps never been a better time to drop your $60-a-month cable bill and subsist purely on free web video.

How else to explain the hoopla last week when News Corps’ chief digital officer, Jonathan Miller, merely hinted that the video site Hulu, co-owned by News Corp., GE’s, NBC Universal, and Disney, might someday charge viewers for some of its content. As reported by the web site DailyFinance, Miller said: “In my opinion the answer could be yes. I don’t see why over time that shouldn’t happen.“

Immediately, people questioned why they’d ever pay for something they were used to getting for free (by now a very familiar quandary for the media industry).

It might seen an anathema to how things are done these days, but it’s not totally implausible that people would pay for web video. A recent report by Bernstein Research analyst Jeffrey Lindsay sheds light on why.

Lindsay surveyed online video watchers and found that 35% are thinking of switching from regular TV viewing to online video—and not just because they’re cheapskates. Out of those who said they might cut their cable, 28% wanted to save money, but 27% said they’d be interested because of the web’s wider selection of content.

This means the popularity of sites like Hulu aren’t just because the price (free) is right. People are getting something they can’t get from cable—at least not yet.

Time Warner Cable (TWC) recently tried an experiment in Milwaukee, Wisconsin in which HBO subscribers could download content from an HBO web site, a service exclusively for subscribers. (HBO, like Fortune’s parent Time Inc., is a unit of Time Warner (TWX, Fortune 500).) Comcast has a Fancast site that streams TV shows.

On the sports front, Cablevision (CVC, Fortune 500) reportedly just agreed to a deal with the Yankees’ YES Network and Major League Baseball Advanced Media that would let cable subscribers who already have YES watch on their computers as well.

This last scenario is a prime example of what the cable industry calls “authentication,“ where users would have to prove they’re paying TV customers before gaining accessing to prime video sites.

Thankfully for the cable industry, most people still want to watch TV on a TV, not a computer monitor. Lindsay’s survey found only 19% are streaming video onto a TV; most are still stuck on their monitors. This is why the start-up Boxee, which lets users watch web video on their TVs, is so threatening to the status quo. And Netflix (NFLX), with its Roku digital video player, also upends people’s notions of how they get content onto their TVs.

The bottom line: TV is in an experimental phase. But all this increased competition is good news for TV lovers, even if Hulu doesn’t stay free forever.

As Alec Baldwin said in the Hulu ad that debuted during the Super Bowl: “There’s nothing you can do to stop it. I mean, what are you going to do, turn off your TV and your computer?“ Unlikely.

I read a story the other about why now is a great time to get rid of cable/satellite in favor of just watching TV via the internet. Hogwash (I thought)! This region in particular is years away from the kind of internet penetration needed for such a thing. But the article below contradicts that thinking. Now my question is: does this mean the 27% without internet are concentrated in our region?

BY MICHAEL MARTZ

Media General News Service

The Internet has changed the way most Virginians live, but not all of them.

A new survey by the U.S. Census Bureau estimates that more than 73 percent of Virginians lived in a household with Internet access in 2007. That’s higher than the national average. Only eight other states had a higher percentage of households with Internet access in 2007.

“The survey confirms that Virginia is one of the most wired states,“ said Jeffrey C. South, an associate professor of mass communications at Virginia Commonwealth University.

However, the survey also shows that access to the Internet isn’t equal for all. Instead, it says access varies widely based on race, income and education. For example, nearly 87 percent of Americans with a bachelor’s degree or higher used the Internet from some location. Of those in the U.S. with no more than a high school education, only about half did so, while less than 19 percent of those without a high school degree were able to go online.

The census survey released last week estimates that about 62 percent of American households use the Internet at home, compared with 18 percent in 1997 and about 50 percent in 2001.

The survey shows that Internet use is highest among whites and Asians, with about 64 percent having Internet access from some location, compared with 50 percent of blacks and about 42 percent of Hispanics, who may encompass more than one race.

Income is another factor in determining whether people have access to the Internet and, if so, where. Almost three-fourths of those connected to the Internet in 2007 had incomes in the top three-fifths of earnings, and almost all lived above the poverty line. Those who lived below the poverty line who went online did so at schools, public libraries and community centers, rather than at home or work.

“I think the digital divide will continue to narrow as computer prices fall, wireless access expands, more people see the value of getting online, and public schools, libraries and community groups promote a universal service approach to the Internet,“ South said.

The census survey also shows how dramatically the nature of home computer use has changed in 20 years. In 1989, the greatest single use of home computers was to play video games, even for people 18 and older. Two years ago, most people used the Internet to search for information about health care or government services, as well as look for jobs and take courses online.

Michael Martz is a staff writer at the Richmond Times-Dispatch.

I had a chat with our morning anchor this morning about DTV readiness. His wife fielded a survey call last night and was stunned to learn that thousands upon thousands of people in East Tennessee aren’t ready (even though the switch happens in 3 hours). She suggested they add a question: do people want to be DTV ready? This is a blog about money, so I’ll veer back to the point of this entry: the government’s implementation of this fiasco has wasted a ton of cash.

News Channel 11 Connects spent millions to upgrade to a digital transmitter. Those millions could have been spent elsewhere (I’ll leave it to your imagination). Then we spent tens of thousands of dollars to continue powering the old analog transmitter (the electric bill wasn’t budgeted for the four months between February and June after Congress moved the switch date). We traded a fortune in commercial time to educate the public about the need for the switch. This is not the best time to be spending that kind of cash.  And tens of thousands of people had to spend cash to continue receiving something that they have traditionally received for free: TV. But: it may all be worth it.

DTV does give you a clearer, sharper picture (not to mention HDTV for those with supported TV’s). It does give you better sound. But that’s not what is so appealing.

DTV will offer exciting possibilities in the future. Eventually, the addition of a new transmitter component will allow you to watch TV on your Blackberry or iPhone (or any other smart phone). Eventually, you’ll be able to interact with your TV in ways you probably couldn’t imagine (selecting stories, taking part in polls, etc).

For today, those of you who didn’t procrastinate… please remember to re-scan your converter boxes. We are moving from digital channel 58 to digital channel 11. So your box needs to know that it’s not looking for us on 58 any longer.

The price of oil soared past $71 a barrel yesterday. It’s been climbing quickly, as have gas prices. I found this puzzling for a long while. I mean, the unemployment rate is ridiculous… surely people are not suddenly driving. Well, I guess we are. Check out this except from CNN: (http://money.cnn.com/2009/06/11/markets/oil.reut/index.htm?section=money_topstories)

LONDON (Reuters)—World oil demand will contract by less than previously expected in 2009, the International Energy Agency said on Thursday in a further sign the economic outlook may have stopped deteriorating.

The agency, which advises 28 industrialized countries, said the upward adjustment followed stronger-than-expected demand early in the year in developed countries. The increase in the estimate for 2009 is the IEA’s first since August 2008.

“These revisions do not necessarily imply the beginnings of a global economic recovery, and may only signal the bottoming out of the recession,“ the IEA said in its monthly Oil Market Report.

Global oil demand is expected to fall in 2009 by 2.47 million barrels per day to 83.3 million. The IEA’s previous forecast was for consumption to contract by 2.56 million bpd, the sharpest fall since 1981.

I will only link this story from CNN. http://money.cnn.com/2009/06/09/news/companies/auto_loans_scarce.fortune/index.htm?section=money_topstories

My take: It’s going to really stink for domestic car companies if they can’t get this financing thing figured out. I think this story speaks volumes about why the likes of GM and Chrysler are in bankruptcy right now.

BY EMILY C. DOOLEY

Media General News Service

The Richmond region has lost more jobs than any other metro area in the state, an economist said yesterday.

From when employment — the number of jobs — peaked in the Richmond area in August 2007 through March 2009, the region lost 26,000 jobs. The job losses included thousands resulting from the bankruptcies of Circuit City Stores Inc., LandAmerica Financial Group Inc., and Qimonda AG.

The Hampton Roads area’s employment hit its highest mark in July 2007. Northern Virginia’s peak came a year later. Both regions have lost 20,000 jobs since their employment peaked.

Despite the time differences, the numbers can be compared because they represent the duration and depth of the recession in a given area, said Christine Chmura, president and chief economist at the Richmond firm Chmura Economics & Analytics.

But there also is a bright side: The layoffs should not be so severe in the months to come.

“We’re still declining . . . but the worst of it is behind us,“ Chmura said while presenting the Virginia Economic Forecast funded by the Thomas Jefferson Institute for Public Policy for the past 10 years.

Virginia also is doing better than the nation. From March 2008 to March 2009, Virginia employment fell by 2.4 percent. During that same period, employment fell by 3.5 percent nationwide, the report said.

Chmura said she expects the recession to end during the fourth quarter of this year or early in 2010.

The reason: The stock market is performing well; inventories of goods are declining, indicating that demand will renew a need for supply; federal stimulus money will begin or already has filtered into the public; and consumer confidence is rising.

“The fastest rate of decline is behind us,“ Chmura said.

Another study could bolster that belief. A June 5 study conducted by the Society for Human Resource Management said more workers are expected to find jobs in June compared with the previous six months.

The study is based on a monthly survey of human resources officials at manufacturing and service-sector companies.

So what happened here? The Richmond area traditionally fares better during downturns, because the economy is diverse and there are a number of company headquarters based here. Typically, layoffs happen in the field before they come home, which is one reason why hosting corporate offices is desirable.

But what began in the housing industry filtered into insurance and finance. Retailers also took a hit as confidence eroded, Chmura said.

In one month, the Richmond area lost two corporate giants, both Fortune 1000 companies with long histories in the region. Consumer electronics retailer Circuit City filed for bankruptcy in November. Title insurer LandAmerica filed a few weeks later.

Both were based in Henrico County.

“I’ve never seen layoffs to this extent,“ said Hugh Keogh, president and CEO of the Virginia Chamber of Commerce, which was host for the event.

Emily C. Dooley is a staff writer for the Richmond Times-Dispatch.

This is a copy and paste from a Media General newspaper in Alabama. I found the perspective from another southeastern state interesting.

Economy, gas prices not likely to stop summer vacations

Peggy Ussery

Media General News Service

It’s summer, and you want to take a vacation.

But the economy continues to struggle and gas prices — while less than last summer — are starting to inch upward.

“We’re actually $1.40 less than we were this time last year, which makes a tremendous difference with people going out of town,“ said Clay Ingram, public relations and marketing manager for AAA Alabama in Birmingham. “But with the economy the way it is and people looking to cut back, they’ll be looking for ways to reduce the overall expense and just spend less. People get very creative in ways to do that.“

There was a drop in travel during Memorial Day weekend, Ingram said, but unless gas prices skyrocket, travel should rebound over last summer when the average national price for regular gasoline was nearly $4 a gallon.

The national average as of Friday was $2.59 a gallon. In Alabama, the price per gallon was averaging about $2.43 as of Friday.

Ingram expects people will take shorter vacations this summer, stay in less expensive hotels, pack lunches or eat in less expensive restaurants, or even stay with friends. Or, he said, people might take a series of day trips where they can return home at night.

“The best way this year (to cut vacation expenses) is to just really be looking for travel bargains,“ Ingram said. “There are some tremendous travel bargains out there ... do your homework a little bit. Figure out what you want to do, when you want to go. A lot of people want to go somewhere, but they’re not sure where they want to go.“

Ingram said he also anticipates more people visiting Alabama state parks this year — a prediction Randy Jinks hopes will come true.

Jinks, a section chief with the state parks division of the Alabama Department of Conservation and Natural Resources, said Alabama’s state parks offer everything from mountains to beaches.

“If you’re taking a traditional vacation, there’s nothing better than a state park,“ Jinks said. “Now if you’re looking for bright lights and neon signs, you don’t want to come to us.“

Ingram said despite the economy and any rise in gas prices, people will still take summer vacations.

“Most people sort of think of a vacation as a necessity rather than a luxury with things as fast-paced as they are,“ Ingram said. “So, most people are going to find a way to go.“

-Oil prices are spiking above $70 per barrel for the first time since October.
-The unemployment rate jumped to 9.4 percent in May, the highest in more than 25 years.
-The furious pace of layoffs eased, with employers cutting 345,000 jobs, the fewest since September.
-Job cuts were smaller than the 520,000 economists expected, while the unemployment rate was higher than the 9.2 percent forecast.
-And my favorite of the day (as a Saturn owner):  A person briefed on the deal says General Motors Corp. will sell its Saturn brand to former race car driver and
dealership chain owner Roger Penske.

BENTONVILLE, Ark. (AP) - Wal-Mart Stores Inc. says it expects to
hire about 22,000 people for new positions in 2009 as it opens
about 150 new or expanded stores.
    Those positions include plenty of cashiers and stock clerks, but
the world’s largest retailer will also be adding store managers,
pharmacists and personnel workers.
    Wal-Mart is holding its annual shareholders meeting tomorrow and
employees from its stores around the world are spending the week in
Bentonville at company headquarters.
    Wal-Mart, still the target of criticism from union-backed groups
for its pay and benefits, has improved its health insurance
coverage and opened it to full- and part-time employees. The
company says 94 percent of its employees have health coverage,
either through Wal-Mart or another family member.

I heard something on NPR last night that I found very interesting. Ralph Nader (consumer activist and Presidential candidate) summarized this excerpt of a letter he sent to Congress:

“Do GM and Chrysler really need to close as many dealerships as have been announced? Is the logic of closing dealers to enable the remaining dealers to charge higher prices; and if so, why is the government facilitating such a move? Is it reasonable and fair for GM to impose liability for disposing of unsold cars on dealers with which it severs relations, as Chrysler has apparently done?“

He was a bit more eloquent on the radio. Basically, he is saying there absolutely no reason why GM or Chrysler could benefit from shuttering the dealerships unless they are trying to raise prices of their vehicles by eliminating competition. Another reason you should care: If you live in Kingsport (where 2 Chrysler dealerships are targeted for closure) and you need service—now you’re going to have to drive to Johnson City if you need repairs covered under warranty.

BY JIMMY LAROUE

Media General News Service

General Motors’ bankruptcy declaration will ripple across the country in a wave of thousands of unsold vehicles, rows of unused parts and unneeded tools, and thousands of dealerships stuck footing the bill, the leader of a state auto dealers association said Monday.

Dealers were left a month ago feeling abandoned when another of Detroit’s Big Three filed for bankruptcy and announced plans to close almost 1,000 dealerships. GM, as expected, followed suit Monday.

“We are obviously concerned that GM will do the same thing,“ said Don Hall, president of the Virginia Automobile Dealers Association.

More than 1,000 GM dealers, including Pat Berrang, owner of Berrang Pontiac-Cadillac-GMC in Waynesboro, received letters two weeks ago informing them that the once mighty carmaker would not renew their franchise contracts. Berrang Chrysler-Jeep-Dodge and Obaugh Ford-Chrysler in Staunton were on Chrysler’s list of dealers targeted for closing.

Berrang has said he would fight any attempt to take his GM franchise away.

Hall sees little use in the effort.

“The truth is these are prepackaged bankruptcies,“ said Hall, who expected GM bankruptcy proceedings to be complete within two months. Chrysler completed bankruptcy proceedings Monday.

While not naming GM dealers slated to close, Hall said several from the Shenandoah Valley region have received letters similar to Berrang’s.

The moves will have little effect on future car buyers, since the federal government will be backing their warranties, Hall said.

“Taxpayers now own 70 percent of GM,“ Hall said. “I would say it’s a pretty strong corporation these days.“

GM CEO Fritz Henderson has said the company has too many dealerships. Hall’s response: That “is the most schizophrenic statement I’ve ever heard.“

Ron Bloom, the leader of President Barack Obama’s auto task force, stressed that the government was not involved in determining which dealers would close, adding that the closings were “based on economic criteria only, and there’s been no other basis for making that decision.“ He also said he did not anticipate any special assistance for targeted dealers, something some lawmakers have urged.

“At no time did anybody from the administration involve itself in closing plants or dealers,“ Bloom said.

He said GM didn’t decide to close dealers to reduce sales, but increase them over time.

“Our job was not to get into that level of detail because then we’d be running General Motors,“ Bloom said, “and we’re not running General Motors.“

In the restructuring plan company officials put forth - and Obama signed off on - Bloom said company officials decided that the dealer network needed to be smaller to be successful.

“We had to insist that General Motors get itself to profitability,“ Bloom said.

Said Hall: “In the end, it’s a huge turf fight, and unfortunately, dealers have no protection in this fight because of bankruptcy.“

Before the bankruptcy filing, Hall said GM was required by Virginia law to buy back unsold vehicles, unused parts and specialty tools.

“In bankruptcy court, GM can petition, like Chrysler, to have those laws ignored,“ Hall said.

Hall said closing the dealerships will not save GM “any significant amount of money.“ He called the dealer closings an “underhanded” move by GM. He said there has been no rhyme or reason to the proposed GM dealer closures, with some occurring in large markets such as Northern Virginia, Richmond and Hampton Roads, and others in medium-sized towns “where there’s no other GM dealers in the community.“

The VADA president also denied that there was any conspiracy with the closures being related to dealers’ political ties and campaign contributions to Republicans, as some right-wing blogs have suggested.

“I think that is the biggest crock of you-know-what that I’ve ever heard,“ Hall said. “Ninety-five to 98 percent of all car dealers are Republicans.“

Most dealers, he said, either give directly to the VADA political action committee, or at most, make small campaign contributions.

Bloom said the government, which is sharing with Canada a 72.5 percent stake in GM, did not want to own the company. He said, however, that the government was the only entity that had enough capital to make the company healthy, stressing that the government took GM shares “reluctantly.“

“The company’s gone through a very challenging time of coming up with a new business plan,“ Bloom said.

The White House said it would now make available to GM about $30 billion in additional federal assistance to support the company’s restructuring plan. It also said that GM would honor customer warranties and dealer incentives for those dealers remaining in the company’s distribution network.

For the dealers slated to be eliminated, the White House expects that they will be offered an agreement to “orderly wind down their operations over the next 18 months.“

John McEleney, chairman of the National Automobile Dealers Association, was pleased with that, but in a statement, said the GM bankruptcy, was a “historically sad day for American business.“

McEleney said the key is now to get out of bankruptcy as soon as possible to minimize disruption to the auto industry.

With massive dealer cuts, McEleney said, GM is “cutting its own customer base.“

Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, said in a statement that his biggest concern was the potential “for governments and unions to influence production, product, workforce and management decisions in ways that could jeopardize the automakers’ chances for survival, put politics and special interests above sound business strategy and disrupt [U.S.] trading relationships across the world.

“If members of Congress, along with government officials from the United States to Germany to Canada, are allowed undue influence over management’s decisions,“ Donohue said, “then you can write this down: These companies will not return to profitability and their survival will be seriously challenged.“

Jimmy LaRoue is a staff writer for The News Virginian in Waynesboro, Va.

Busy morning all around here at 11 Connects. Crazy in some respects. We have multiple plane crashes that we covered exclusively last night. This morning, there’s a missing flight over the Atlantic. I just wanted to muse about the automobiles this morning. In some places, gas is now $2.50 a gallon. Our reasonable gas prices sure didn’t last very long, did they?

This is from USA Today moments ago: (http://www.usatoday.com/money/industries/energy/2009-05-29-oil-prices_N.htm?csp=34)

LONDON — Oil prices extended to above $66 a barrel Friday to hit a fresh six-month high after a reported fall in oil inventories and further signs of an improving economy.
OPEC oil ministers, who on Thursday agreed to leave production levels unchanged, expected the rally to continue until 2010. “I think that by year end we will see $70 to $75,“ Abdalla Salem El Badri, secretary general of the Organization of the Petroleum Exporting Countries, said Friday in Vienna.
_______

I notice that our region’s gas prices have climbed to $2.34. There hasn’t been an increase in demand. This is all speculation—the same speculation we suffered last summer. The more things change, the more they stay the same. Since oil has jumped $6.00 is less than a week, I’m curious what makes Mr. Abdalla Salem El Badri think they they will only go up $4.00 to $9.00 in the next seven months.

By SHANNON BEHNKEN

MEDIA GENERAL NEWS SERVICE

Despite rising unemployment, Americans continue to spend, blowing comparisons of this recession to the Great Depression, according to research by Wachovia economists.

“If you didn’t have a job during the Great Depression, you didn’t have money to spend,“ said John Silvia, chief economist for Wachovia. “Things have changed. Not having a job doesn’t mean you are destitute anymore.“

That’s mainly because many of those without jobs have other means of income, including Social Security and food stamps, Silvia said. Stimulus checks sent by the government and changes in tax withholding have also kept money in people’s pockets.

Another reason why consumer spending hasn’t taken a big hit, Silvia said, is what he called the “gray economy.“ Immigrants who don’t report their income are still spending money, he said.

Consumption spending went up 2.2 percent in the first quarter, even though more than 700,000 jobs were cut and national retailers mostly posted declining revenue.

The exception has been Wal-Mart, where sales rose as people shopped for lower-priced merchandise.

Silvia said he doesn’t know where people are spending their money and exactly where that money is coming from, but he said he suspects that some are using credit cards to make ends meet.

In those cases, the spending contributes to the consumer spending data, even though people may not have the money to pay for their purchases.

“In the short run, there are people able to spend money without a job because they have credit cards,“ he said.

Only time will tell whether Americans are spending wisely, Silvia said

A quick entry this morning… major wire services are reporting a new survey by leading economists this morning. They predict the economy will return to positive territory by the second half of the year (which is barely a month away), though job growth won’t resume until early 2010. My question is this: in our region, which I’m frequently told is 11 months behind in terms of the economy, when will we see a return to growth? Has it already started? Food for thought.

Found this on a CNN story about saving money. I found it useful (http://money.cnn.com/galleries/2009/moneymag/0905/gallery.save_money.moneymag/5.html):

Now that lenders are demanding to see what shape your credit is really in, the standards for good scores have changed.

While a FICO of around 720 used to give you a shot at the lowest mortgage rates, today you’ll need a 740 or higher to qualify for the best terms.

How can you bridge the gap? First, make sure mistakes on your credit reports aren’t dragging you down. Go to annualcreditreport.com and get a free report from the major credit bureaus: Equifax, Experian, and TransUnion.

Next, goose your score by lowering your debt-to-credit ratio. If you owe $2,000 but can borrow as much as $15,000, your ratio would be about 13%. Pay off enough debt to “get your overall utilization down below 10%, and you will see your score improve,“ says score expert Gerri Detweiler of Credit.com.

Another trick: Avoid using your cards in the month or so before applying for a loan. Even if you pay off your balances at the end of the month, there’s a chance a lender might “pull” your score the day before those payments are recorded, making it look as though you’re tapping your credit.

And ask issuers to raise the limits on your existing accounts. “For all the news that card issuers are cutting credit, they are also selectively offering more credit to their best clients,“ says Craig Watts of FICO.

By Julianne Pepitone, CNNMoney.com (http://money.cnn.com/2009/05/21/news/economy/gas_price_trends/index.htm?section=money_topstories)

NEW YORK (CNNMoney.com)—With the Memorial Day weekend and summer driving season approaching, motorists are facing a familiar trend—surging gasoline prices.

But while pump prices have increased nearly 17% over the last 24 days, and are likely to go even higher over the coming weeks, experts don’t foresee anything like the record levels of 2008.

“An overall increase is not abnormal for this time of year,“ said Bob van der Valk, a fuel-pricing analyst with 4Refuel Inc. in Lynnwood, Wash. “It will follow a similar trend, just starting at a lower price than 2008 did.“

He also cited recent refinery fires in California, Pennsylvania and Illinois, curtailing supply, as a reason for the current spike.

The national average price for a gallon of regular unleaded gasoline increased Friday to $2.391, up 2.9 cents in a daily survey compiled for motorist group AAA. That’s the 24th consecutive increase, during which the price of gas has increased 34.3 cents, or 16.7%. All 50 states and the District of Columbia have regular unleaded gas prices of $2 and higher.

But the surge in prices is somewhat relative. The average price is down 38% from the $3.831 per gallon AAA reported one year ago. And it’s down $1.72 or 41.8%, from the record high of $4.114 set last July 17.

Gas prices could increase to $2.41 this weekend, said Tom Kloza, publisher of Oil Price Information Service.

“That would be an astounding 50% increase from November,“ he noted. “We have never seen a similar percentage increase from winter to spring.“

As a result of the comparatively lower prices, van der Valk said he expected Americans will drive more this summer when they take time off.

That wasn’t the case last year, when prices at the pump were volatile. Soaring prices curtailed travel, and by July 17 gas prices had risen already 35% year-over-year.

Consumers finally began to see a reprieve in August. But late summer brought Hurricanes Gustav and Ike, and gas prices shot back up in September, reaching more than $5 per gallon in some parts of the country. On Sept. 16, gas prices started declining amid weakening demand as the global economic slowdown took hold.

Barring major hurricanes or other unforeseen events, van der Valk expects the average price to peak around $2.75 by Labor Day. California and other West Coast states could see prices spike as high as $3, he added.

Kloza doesn’t see quite as big a spike.

“If you believe in $3 gas, you believe in the Dow going back to 10,000,“ he said. “Fundamentals are the only way prices will move higher—and I don’t see that.“

Instead, Kloza predicted average national prices will peak this year around $2.50—and “we may be really close” to that level, he said.

And then, the cycle heads downward again.

“It could go below $2 by Christmas,“ van der Valk said. “People will say, ‘Great, the gas companies are giving it away again.‘“

I wanted to extend a note of appreciation to the posters who responded to my question about truck buying. In a strange twist of web fate, I can’t post a comment to my own entry. Oh well. Thanks for your thoughts!

A story on the Early Show grabbed my attention this morning: car companies are slashing prices to record lows. It gave me pause. I thought maybe I should bite the bullet and buy a truck now (see blog from a few days ago). Then I started to worry, as I am prone to do. If car companies lower prices and a bunch of people start buying the cars… it’s possible this will be exactly like foreclosure properties. People are snapping up foreclosed properties like crazy right now. Same homes, but about 30% less than the house next door. Why? Because the banks want to get rid of them. That has the effect of lowering the price of the house next door anyway. Which means more homes lose value, and people can’t sell. Which means they just send the keys back to the bank. It’s a vicious circle.

So… follow the logic here. Chrysler lowers it’s price on a Dodge Dakota to be below market value just to get it off the lot. Other car companies follow suit in order to move their inventory. There’s no demand to begin with, so it creates an environment where car companies must keep lowering the price. That creates a situation where more car companies fail because they keep loosing so much money. This is basically why deflation is often more dangerous than inflation. Food for thought. It could be a long year.