Oct unemployment rate, and Obama signed jobless benefit extension

President Obama said he signed into law Friday a bill to provide up to 20 additional weeks of jobless benefits to unemployed Americans and extend the $8,000 tax credit for new homebuyers into the middle of next year.

The signing came after the Labor Department reported that the unemployment rate spiked to a 26-year high of 10.2% in October, with 190,000 jobs lost in the month.

CCFSettlement Nov 2009 status

The Court has entered a Memorandum and Order, dated October 22, 2009, granting final approval of the settlement.

Q2 2009, number of problem banks reach 400

The number of institutions on the government's so-called "problem bank" list surpassed 400 in the latest quarter, climbing to its highest level in 15 years, according to a government report published Thursday.

July unemployment rate

U.S. July unemployment rate is 9.4%.

Job growth and decline

• Construction lost 110,000 jobs in January 2009, which put industry losses at over one million jobs since early 2007
• Manufacturing lost 207,000 jobs this past January, the largest one-month decline since 1982
• Retail lost 45,000 jobs,
• warehousing lost 44,000,
• and temporary work dropped nearly 80,000 positions, all in January
  Even finance lost 42,000 jobs

Two notable industries saw continued growth this past January:

• Health care employment rose by 19,000 jobs, slowing a little from it's 2008 average of 30,000 jobs a month
• Private education also saw a jump in employment of over 33,000 jobs

Source: Karl Fendelander's article on Yahoo education

Cash for clunkers

Congress passed the "cash for clunkers" measure late Thursday night as part of the $106 billion war spending bill. President Barack Obama plans to sign the bill into law.

Meanwhile, car dealers may honor rebates starting July 1. The federal agency needs the 30-day window to implement regulations to safeguard the program from fraud and abuse, Tyson said.

Among the issues regulators might address: Does the consumer hold a valid legal title to the car he is seeking to trade in? Will the clunker be appropriately disposed of so that it can't be cashed-in again?

The agency on Friday was scrambling to launch a Web site, www.cars.gov, to provide consumers with information about the program.

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Find more detail: http://nhtsa.gov/staticfiles/DOT/NHTSA/Rulemaking/Rules/Associated%20Files/CARS_1stDayNotice_06262009.pdf

Unemployment rate update, May 2009

The national unemployment rate rose to a 26-year high of 9.4% in May, up from 8.9% in April.

Top 5:

. Michigan: 14.1%
. Oregon: 12.4%
. South Carolina: 12.1%
. Rhode Island: 12.1%
. California: 11.5%

Buying your own health insurance

Source: CNN

People who don't have health insurance pay about $2, 260 in out of pocket costs per year -- that's twice as much as someone who is covered under an employer's plan according to Consumer Reports.

First, check out insurance comparison Web sites like eHealthinsurance.com. Use it to get a range of individual health insurance policies and to compare prices and benefit levels.

Next, go to your state insurance department's Web site. Here you may find companies selling individual coverage in your state. And the insurance department may also provide complaint records on individual insurance companies.

Finally, consider using a health care broker who knows your local market. Brokers can help you shop for price. They'll also know what company is more liable to accept you based on your health conditions. The best part is that you won't pay a dime out of pocket says Amir Mostafie at eHealthinsurance.com. They get a commission paid by the insurance company that you sign up with.

===

You don't automatically qualify for Medicaid just because you have a low income. It also depends on your family status -- if you have kids etc.

To find out what eligibility requirements of health care programs like S-Chip or programs for the elderly, go to coverageforall.org.

Jobless rate: 9.4%, job cut rate slows down

Naitonwide jobless rate is at 9.4%.

In May/09, the number of job cuts is 345K, fewest since November 2008. In April/09, the number is at 600K.

Unemployment update

The unemployment rate declined in 21 states in April, compared with the month before, while 11 states had no rate change, according to federal data released Friday.

Still worst unemployment states are:
Michigan: 12.9%
Oregon: 12%
South Carolina: 11.5%
Rhode Island: 11.1%
California: 11%

IRS says audits will focus on wealthy

The average taxpayer has a 1% chance of being audited compared with a 5.5% chance among millionaires.

Auto repo

• Auto repo law is by state.
  

• First you are late for your payment. You'd receive a late payment warning by mail; (but not always as there is no law that requires this. Only if the credit contract says so, is the lender required to notify you in writing)
  
  
• You receive a follow up call to the above warning;
  
  
• You pass some predetermined grace period (look in your credit disclosure statement for the appropriate number of days)
  
  
• You may receive one more warning (usually by mail)
  
  
• The car is taken away. If you hide or move your car away, the finance company can get court order to ask you to turn in the car.
  

• You receive a notice that your car has been repossessed and what your rights are including how to get it back.
  
  
• If you can figure out a way to pay, you'll have to pay the repossession fees, towing charges, impound charges, storage fees and various other fees incurred by the company that repossessed the car. This can easily run several hundred dollars.
  
  
• If you cannot pay the repo fees, you'll lose the car completely! It's sold at auction and the proceeds are applied to the balance of your auto loan and the fees mentioned above. If the balance is not paid off you'll be informed of the balance and that you are still responsible for paying it off. If there is money left over after the car loan balance and all repossession fees are paid, don't expect to get any of the profit; the company can legally keep it.
  
  
• Your credit report is updated to reflect the account as a "repossession"

55K homeowners received loan modification

More than 55,000 troubled homeowners have received loan modification offers under President Obama's foreclosure prevention program, officials said Thursday.

Chrysler closes 789, GM closes 1100 dealers

GM will cut another 900-1300 dealers. Total cut will be 40% of current 6,000 dealers.

Bernanke: Economy should grow again later in 2009

"We continue to expect economic activity to bottom out, then to turn up later this year," he told lawmakers. "We expect that the recovery will only gradually gain momentum."

Layoff records

4/23/2009 Embarq 51 Telecommunications
4/22/2009 Philip Morris 1,100 Tobacco
4/22/2009 T. Rowe Price 288 Financials
4/22/2009 Capital One Financial 60 Financials
4/22/2009 Brown-Forman 250 Food
4/21/2009 Yahoo! 675 Software
4/20/2009 Nordstrom 72 Retailing
4/18/2009 Weyerhaeuser 814 Materials
4/15/2009 Emerson Electric 14,200 Conglomerates
4/14/2009 Discover Financial Services 500 Business Services
4/14/2009 Deere & Co.1,387 Capital Goods
4/13/2009 General Electric 3,235 Conglomerates
4/9/2009 Johnson & Johnson 900 Pharmaceuticals
4/8/2009 Procter & Gamble 410 Household
4/6/2009 Eastman Chemical 300 Chemicals
4/6/2009 Navistar International 350 Durables
4/3/2009 FedEx 1,900 Transportation
4/3/2009 Walt Disney 3,100 Media
4/2/2009 Rite Aid 297 Retailing
4/01/2009 3M 3,500 Conglomerates
3/31/2009 Cardinal Health 800 Health Care
3/30/2009 KLA-Tencor 500 Semiconductors
3/27/2009 Wal-Mart Stores 1,850 Retailing
3/26/2009 Agilent Technologies 3,300 Technology
3/26/2009 Google 300 Software
3/25/2009 Berkshire Hathaway 945 Finance
3/25/2009 Constellation Brands 400 Food
3/25/2009 IBM 7,800 Software
3/24/2009 Legg Mason 320 Financials
3/24/2009 Synovus Financial 200 Banking
3/24/2009 Cummins 1,427 Capital Goods
3/22/2009 Freeport-McMoRan 2,800 Materials
3/19/2009 Lam Research 375 Semiconductors
3/17/2009 Caterpillar 27,378 Capital Goods
3/17/2009 Corning 200 Technology
3/16/2009 TRW Automotive Holdings 417 Consumer Durables
3/13/2009 Baker Hughes 3,000 Oil & Gas
3/13/2009 PPG Industries 2,500 Chemicals
3/13/2009 Sunoco 750 Oil & Gas
3/11/2009 AMR 323 Transportation
3/10/2009 Lowe's 82 Retailing
3/10/2009 Principal Financial 60 Financials
3/10/2009 United Technologies 11,600 Conglomerates
3/4/2009 Northrop Grumman 750 Aerospace
3/4/2009 Dover 180 Conglomerates
3/4/2009 General Dynamics 1,379 Aerospace
3/3/2009 U.S. Steel 6,705 Materials
3/3/2009 FirstEnergy 335 Utilities
2/26/2009 Chesapeake Energy 215 Oil & Gas Operations
2/26/2009 JPMorgan Chase 14,000 Banking
2/25/2009 Dow Chemical, Corning 800 Joint Venture
2/25/2009 Coach 150 Household
2/24/2009 Micron Technology 2,000 Semiconductors
2/19/2009 Avon Products 3,000 Household
2/19/2009 Forturne Brands 236 Consumer Durables
2/18/2009 Chevron 230 Oil and gas
2/18/2009 Delta Air Lines 2,100 Transportation
2/18/2009 Best Buy 540 Retailing
2/18/2009 Goodyear 5,000 Consumer Durables
2/17/2009 MDU Resources 130 Utilities
2/17/2009 General Motors 66,758 Consumer Durables
2/17/2009 Johnson Controls 205 Consumer Durables
2/17/2009 Smithfield Foods 1,800 Food
2/16/2009 Delphi 800 Consumer Durables
2/11/2009 United Technologies 1,350 Conglomerates
2/11/2009 W.W. Grainger 400 Capital Goods
2/11/2009 Terex 5,000 Capital Goods
2/10/2009 News Corp. 90 Media
2/10/2009 U.S. Airways Group 233 Transportation
2/10/2009 Nike 1,400 Products
2/5/2009 Estée Lauder 2,000 Personal Products
2/5/2009 Allergan 460 Pharmaceuticals
2/4/2009 Time Warner 2,750 Media
2/4/2009 Cisco Systems 2,000 Technology
2/3/2009 Bancshares 500 Banking
2/3/2009 Electronic Arts 1,100 Software
2/3/2009 PNC Financial Services 5,800 Banking
2/3/2009 Comcast 50 Media
2/2/2009 Goodrich 35 Aerospace
2/2/2009 Macy's 7,000 Retailing
1/30/2009 Sears Holdings 300 Retailing
1/29/2009 Broadcom 200 Semiconductors
1/29/2009 International Gaming Technology 200 Leisure
1/29/2009 Textron 4,665 Conglomerates
1/29/2009 Ford 3,800 Durables
1/29/2009 Eastman Kodak 4,500 Household
1/29/2009 Black and Decker 1,200 Household
1/28/2009 Starbucks 6,700 Restaurants
1/28/2009 Boeing 10,000 Aerospace
1/27/2009 Target 1,000 Retailing
1/27/2009 Masco 600 Construction
1/26/2009 Texas Instruments 3,400 Semiconductors
1/26/2009 Lincoln National 540 Insurance
1/26/2009 Home Depot 7,000 Retailing
1/26/2009 Pfizer 19,800 Pharmaceuticals
1/26/2009 Sprint Nextel 8,000 Telecommunications
1/23/2009 Abercrombie & Fitch 50 Retailing
1/23/2009 Harley-Davidson 1,100 Consumer Durables
1/22/2009 Microsoft 5,000 Software
1/22/2009 Huntsman 1,665 Chemicals
1/21/2009 Burlington Santa Fe 2,500 Transportation
1/21/2009 UAL 1,000 Transportation
1/21/2009 SPX 400 Conglomerates
1/21/2009 Intel 5,000 Semiconductors
1/21/2009 Wynn Resorts 53 Leisure
1/21/2009 Eaton 5,609 Capital Goods
1/20/2009 Clear Channel 1,850 Media
1/16/2009 ConocoPhillips 1,300 Oil & Gas
1/16/2009 Hertz Global Holdings 4,000 Business Services
1/16/2009 WellPoint 600 Health Care
1/16/2009 Advanced Micro Devices 1,700 Semiconductors
1/15/2009 Xerox 275 Business Services
1/15/2009 MeadWestvaco 2,000 Materials
1/15/2009 Autodesk 750 Software
1/15/2009 Marshall & Ilsley 830 Banking
1/14/2009 Ecolab 1,000 Chemicals
1/14/2009 Motorola 4,000 Technology
1/13/2009 KeyCorp 200 Banking
1/13/2009 Newell Rubbermaid 75 Household
1/12/2009 Mosaic 1,000 Chemicals
1/12/2009 Precision Castparts 40 Defense
1/9/2009 Oracle 500 Software
1/9/2009 Smithfield Foods 75 Food
1/8/2009 Union Pacific 230 Transportation
1/7/2009 Walgreen 1,000 Retailing
1/7/2009 EMC 2,400 Technology
1/6/2009 Alcoa 13,500 Materials
1/5/2009 Cigna 1,100 Health Care
12/31/2008 Mohawk Industries 160 Consumer Durables
12/31/2008 Tyson Foods 120 Food
12/31/2008 Target 132 Retailing
12/30/2008 Allegheny Technologies 323 Materials
12/30/2008 Motorola 400 Technology
12/23/2008 ULA (Boeing, Lockheed Martin) 172 Joint Venture
12/23/2008 Las Vegas Sands 11,500 Leisure
12/22/2008 Parker-Hannifin 405 Capital Goods
12/19/2008 Genworth Financial 1,000 Insurance
12/19/2008 Sovereign Bancorp 1,000 Banking
12/18/2008 Omnicom Group 3,145 Media
12/17/2008 Ryder System 3,100 Services
12/17/2008 Western Digital 2,500 Technology
12/17/2008 Aetna 1,000 Health Care
12/17/2008 Parker-Hannifin 46 Capital Goods
12/17/2008 Bristol-Myers Squibb 3,700 Pharmaceuticals
12/16/2008 CBS 30 Media
12/15/2008 Merrill Lynch 400 Financials
12/15/2008 Charles Schwab 100 Financials
12/12/2008 International Paper 2,050 Materials
12/11/2008 Bank of America 35,000 Banking
12/11/2008 Whirlpool 250 Durables
12/10/2008 Mohawk Industries 105 Durables
12/09/2008 Praxair 1,600 Chemicals
12/08/2008 Anheuser-Busch Co. 1,400 Food
12/08/2008 Wyndham Worldwide 4,000 Leisure
12/08/2008 Dow Chemical 5,000 Chemicals
12/05/2008 Cablevision 100 Media
12/05/2008 Staples 140 Retailing
12/04/2008 Steel Dynamics 65 Materials
12/04/2008 Windstream 170 Telecommunications
12/04/2008 E.I. du Pont de Nemours 2,500 Chemicals
12/04/2008 AT&T 12,000 Telecommunications
12/03/2008 Gannett 2,000 Media
12/03/2008 Adobe Systems 600 Software
12/03/2008 Jefferies Group 300 Financials
12/03/2008 Viacom 850 Media
12/01/2008 PepsiCo 87 Food
11/25/2008 Dana Holding 50 Durables
11/24/2008 BlackRock 10 Financials
11/21/2008 Western Union 200 Business Services
11/20/2008 Bank of New York Mellon 1,800 Banking
11/20/2008 Boeing 800 Aerospace
11/17/2008 Citigroup 52,000 Banking
11/14/2008 Sun Microsystems 6,000 Technology
11/12/2008 Applied Materials 1,800 Technology
11/12/2008 Morgan Stanley 2,000 Finance
11/12/2008 Liberty Media 910 Retailing
11/11/2008 AK Steel Holding 800 Materials
11/6/2008 Mattel 1,000 Household
11/6/2008 MGM Mirage 400 Leisure
11/4/2008 Hartford Financial Services Group 500 Finance

Watch out for bank fees

According to the latest bankrate.com study, ATM fees average $1.97. That's 11 percent higher than the prior year.

Another common culprit: overdraft fees. Overdraft fees kick in when you don't have enough money in your account to cover a transaction.

If you can't maintain daily minimum of your account, there is penalty charged.

Some banks also charge for online payment services.

==============================================================================
Download Agilelandlord Landlord Software

Fed sees no economic recovery this year

Source: cnnfn.com written by Veronica Smith (AFP)

WASHINGTON (AFP) – The Federal Reserve no longer sees signs of recovery this year from a prolonged recession and only weak growth in 2010, minutes of a policy-setting meeting said.

Despite massive interventions by the Fed and other government bodies to jumpstart the moribund economy and unblock tight credit, policymakers at a March meeting viewed grimmer projections than those made two months earlier.

The United States, among the earliest to enter recession after financial turmoil stemming from a home mortgage meltdown, could begin to grow again "slowly" next year despite numerous constraints, according to Fed projections.

"Real GDP (is) expected to flatten out gradually over the second half of this year and then to expand slowly next year," the minutes of the Federal Open Market Committee (FOMC)'s March 17-18 meeting said.

The central bank anticipated the recovery "as the stresses in financial markets ease, the effects of fiscal stimulus take hold, inventory adjustments are worked through, and the correction in housing activity comes to an end."

The United States plunged into recession in December 2007 after a home mortgage meltdown triggered a financial crisis that spread around the world, slashing economic growth.

FOMC chairman Ben Bernanke and his policymakers at the March meeting stared down grim staff-prepared forecasts that were sharply lower than the outlook prepared for the January FOMC meeting.

In January, the economy was expected to recover "gradually" during the second half of 2009 albeit shrinking between 0.5 percent and 1.3 percent for the full year.

The central bank had also predicted growth would accelerate to between 2.5 percent and 3.3 percent for 2010. Critics at the time had said the forecasts were overly optimistic.

"Nearly all meeting participants said that conditions had deteriorated relative to their expectations at the time of the January meeting," the latest FOMC minutes said.

The slowdown was broad, across sectors, and included large declines in equity prices, a further drop in house prices, mounting job losses that threatened to further depress consumer spending and weakening business capital spending.

Policymakers noted "the apparent sharp fall" in foreign economies that was hitting US exports, reducing their supporting role for the US economy in the near term.

They also highlighted significant uncertainty about the prospects for the economy, which slid into recession in December 2007.

Most meeting participants saw "predominating" downside risks in the near term, mainly due to potential "adverse feedback effects" from rising unemployment weighing on consumer spending and mounting losses at financial institutions further tightening credit conditions.

"All told, this suggests that third-quarter and fourth-quarter GDP results aren't likely to show any sort of recovery, while the unemployment rate could breach the upper range of the FOMC's projections of 9.2 percent, and perhaps reach double-digits," said Terri Belkas at Forex Capital Markets.

In a speech in Tokyo Wednesday, Dallas Federal Reserve chief Richard Fisher said that the economy probably contracted in the first three months of the year at an annual pace "very similar" to the previous quarter, when GDP shrank 6.3 percent.

Policymakers in March voted to unanimously hold the Fed's base interest rate at a historically low range of zero to 0.25 percent, where it has been since mid-December.

They also announced a 1.15-trillion-dollar initiative to unblock frozen credit, including ramped-up purchases of mortgage-backed securities and the launch of program to buy long-term Treasury bonds.

Brian Bethune, chief US financial economist at IHS Global Insight, suggested the Fed should try to encourage demand for its new Term Asset-Backed Securities Loan Facility (TALF), intended to unlock credit flows for auto loans and credit cards.

"The Fed needs to work with Congress to iron out some of the wrinkles that are impeding a more rapid uptake of investors and borrowers within this program. This clearly needs to be a short-term priority," Bethune said.

Five scams on the rise

Source: 3/16/2009 cnnfn

- Stimulus grant scams. Since the $787 billion stimulus bill became law in February, dozens of websites have popped up offering advice for a fee on how to get government grants on everything from small business initiatives to paying off student loan debt. The BBB has received hundreds of complaints about sites like federalgrantsolutions.com, which billed consumers $70 a month on their credit cards for info they thought was free. First, know that the government doesn’t hand out grants for paying off personal debt and grants are usually given to non-profits. If you want to know how to apply for a government grant for a non-profit or small business initiative, that info is readily available for free at grants.gov and sba.gov.

- Mortgage foreclosure consultants. Foreclosure rescue scams are proliferating as the number of home foreclosures rises. The FTC has filed lawsuits or shut down a number of foreclosure rescue companies but scammers keep popping up. While some scammers trick you into signing over the title of your home, others promise to negotiate with your lender for an upfront fee, then pocket the money and disappear. Beware of cold-callers or anyone showing up at your doorstep offering to help stop a foreclosure. Only work with a HUD-certified housing counselor if you run into trouble paying your mortgage.

- Auto repair fraud. According to the Maryland Office of Consumer Protection, auto repair fraud is sharply rising at dealerships around the U.S. Since car dealerships aren’t selling many cars these days, some less than reputable dealers are trying to bill customers who go in for routine maintenance for repairs that in many cases are just unnecessary. Get a written estimate of any proposed repairs and a second opinion before any work is done.

- Property tax reassessment fraud. Though home prices are still falling in many parts of the country, cash strapped cities and towns are much slower to decrease property taxes. Homeowners around the U.S. are being inundated with offers from companies promising to get property taxes lowered in exchange for a steep fee or cut of whatever is recovered. You don’t need to pay a lawyer or third-party to fight your assessment. Homeowners can file an appeal on property taxes at no cost themselves.

- Retail closeout scams. As the number of retailers going out of business rises, complaints about retail fraud are growing. In addition to phony sale prices and low quality merchandise found in “going out of business” sales, some retailers on shaky financial ground are taking consumer deposits on big ticket items like furniture, shutting down and then reopening a few days later or weeks later for business under another name, all without returning a consumer’s deposit.

If you or someone you know gets tangled up in a scam, file a complaint with your state consumer protection bureau. Unlike the FTC, a state or county agency can investigate individual complaints and advocate on your behalf. And if enough people complain, they’ll get law enforcement to fine or shut down the scammers. For other tips on outsmarting scammers, check out the Consumer Action Handbook.

- Donna Rosato

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Consumer bankruptcies will rise to > 1.4M in 2009

The ABI, a non-partisan research group, also expects bankruptcies in 2009 to surpass last year's 1.06 million filings. "We expect at least 1.4 million bankruptcies this year," said ABI Executive Director Samuel Gerdano in a written statement.

31.8 million Americans received food stamps

A record 31.8 million Americans received food stamps at the latest count, an increase of 700,000 people in one month with the United States in recession, government figures showed Thursday.

The Labor Department will release its latest jobs report Friday. Economists surveyed by Briefing.com forecast that the unemployment rate rose to 7.9% in February and that 650,000 jobs were lost.

Microsoft to create 2000 to 3000 jobs

Microsoft may create up to 3,000 jobs as it raises investment in research and development by $1 billion this year amid a financial crisis that has also taken its toll on the software giant.

"Realignment of the company will help us reassign people and could allow us to create some 2,000 to 3,000 new jobs," Kevin Turner, chief operating officer, said on Tuesday at CeBit, Europe's biggest technology trade fair.

Google CEO sees economy situation "pretty dire"

Google Inc. (GOOG) Chief Executive Eric Schmidt said Tuesday the economic situation is "pretty dire," adding that he does not expect to see improvement until 2010.

2009 stimulus package, car buying

This deduction is only applicable to new foreign or domestic cars less than $49,500 and weigh less no more than 8,500 pounds (some SUV and trucks also qualify for this). The deduction is only available to families making less than $260,000 (or $135,000 for single filers).

Stimulus: How it may affect your wallet

By Jeanne Sahadi, CNNMoney.com senior writer
Last Updated: February 13, 2009: 12:50 PM ET

NEW YORK (CNNMoney.com) -- Key lawmakers in the Senate and House have reached a compromise on a final economic recovery package.

The new stated topline price tag: $787 billion. That's below both the $820 billion House-passed version and the $838 billion Senate-passed version.

The compromises that the House, Senate and White House made have changed the scope of a number of provisions, including those affecting individuals directly. In some cases, they either reduced or expanded a benefit relative to what appeared in the Senate or House versions of the bill.

Here's a look at some of the provisions that will have a direct effect on individuals in their paychecks, on their tax returns, and with regard to their unemployment benefits and health insurance if they've lost a job.

The information below is based on materials put out by the key committees in the House and Senate as well as House Speaker Nancy Pelosi, D-Calif.

Making Work Pay Credit: The bill provides a $400 credit per worker and a $800 credit per dual-earner couple. The full credit would be paid to people making $75,000 or less ($150,000 per dual-earner couple). A partial credit would be paid to those making above those amounts but no more than $100,000 ($200,000 for couples).

The credit would also be refundable, which means that even very low-income families who don't make enough to owe income tax would be able to claim it.

For most working individuals, the credit will be paid over time at roughly $15 per period, assuming 26 pay periods in a year. Estimated cost: $116 billion.

One-time payments to those who don't work: For retirees, disabled individuals and others who don't work, the bill provides a one-time $250 payment. Estimated cost: $14.2 billion.

Break for higher income families: The bill includes a one-year provision to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax. The AMT was intended primarily for high-income taxpayers but has in recent years threatened to engulf those lower down the income scale. Estimated cost: $70 billion.

Temporary deduction for car buyers: The bill would let those who buy a new car, light vehicle, recreational vehicle or motorcycle in 2009 deduct state and local sales taxes as well as any excise tax charged in the purchase. The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). It will be an above-the-line deduction, meaning even taxpayers who don't itemize may take it in addition to the standard deduction. Estimated cost:$1.7 billion.

Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit's expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.

The full credit is available to those making $75,000 or less ($150,000 for joint filers). Estimated cost: $6.6 billion.

New temporary college credit: The bill introduces the American Opportunity Tax Credit, which would be in effect for 2009 and 2010. It expands the existing Hope Scholarship tax credit and would be worth as much as $2,500 for higher education expenses, up from $1,800 currently.

The full credit would be available to those making less than $80,000 ($160,000 for joint filers). Those making between those amounts and $90,000 ($180,000 for joint filers) would get a partial credit. And the break would also be partially refundable, meaning lower income families with little or no tax liability could now claim some of the credit. Estimated cost: $13.9 billion.

Temporary Pell Grant increase: The bill increases the maximum Pell Grant by $500 to $5,350 in 2009 and $5,550 in 2010. Estimated cost: $15.6 billion.

Temporary expansion of child tax credit: The bill increases eligibility for the child tax credit by lowering the income threshold that must be met for the credit to be refundable. The threshold would be lowered to$3,000 for this year and next. That will allow lower income families to claim more of the credit than under current law. Estimated cost: $14.8 billion.

Temporary increase in earned income tax credit: The credit will be temporarily increased to 45% from 40% of qualifying earnings for low-income families with three or more children. It also includes a marriage penalty relief provision for couples who qualify for at least a portion of the credit. Estimated cost: $4.6 billion.
Direct lifeline benefits

Health insurance help for the jobless: The bill includes provisions to help eligible jobless workers pay for health insurance under Cobra. Cobra coverage allows newly unemployed workers to keep health insurance provided by their former employers for a period of time.

For workers who have been laid off between Sept. 1, 2008, and Dec. 31, 2009, the government will subsidize 65% of their premiums under Cobra for up to 9 months.

Those people laid off between Sept. 1, 2008, and the day the stimulus law goes into effect, and who did not sign up for Cobra, will get an additional 60 days to do so and receive the subsidy.

The subsidy will be limited to those whose income for the year is $125,000 or less ($250,000 for couples filing jointly). Estimated cost: $24.7 billion.

Another provision provides states funding to help pay for expanded Medicaid rolls for workers who've lost their jobs and can't afford health care on their own or can't get Cobra coverage because their former employer doesn't offer a health care plan. Estimated cost: $87 billion.

Unemployment benefits: The bill provides jobless workers with an additional 20 weeks in unemployment benefits, and 13 weeks on top of that if they live in what's deemed a high unemployment state, of which there are now about 30. Estimated cost: $27 billion.

In addition, the weekly unemployment benefit will temporarily increase by $25 on top of the roughly $300 jobless workers currently receive. Estimated cost: $8.8 billion.

Plus, the first $2,400 of benefits in 2009 would be exempt from federal income taxes. Estimated cost: $4.7 billion.

Food stamp payments: The bill includes a provision would increase food stamp payments by 13.6%, so a family of four would see an additional $80 on top of the $588 per month they receive currently. Estimated cost: $19.9 billion.

The bill also provides assistance to help local groups providing food and shelter, elderly nutrition services such as Meals on Wheels, and a program to help food banks re-stock their shelves. Estimated cost: $350 million.

Other help for needy families: The bill provides funding to states to create a contingency fund through 2010 for the welfare program called Temporary Assistance for Needy Families, which provides cash assistance to the needy. Estimated cost: $2.4 billion. To top of page

Prevent identity theft

Experts say consumers can reduce the risk of fraud by: (1) not sharing personal data with unknown emailers and callers, or on social networking sites and chat rooms; (2) keeping sensitive documents secure; (3) destroying unnecessary data; (4) choosing hard-to-guess passwords and PINs and (5) notifying financial services providers and the Equifax, Experian and TransUnion credit bureaus if fraud is suspected.

2/2009 car deals

Feb 2009 new car deals:

Carmaker	Car Deal	Expires
BMW	2.9% APR financing (up to 60 months) on most 2009 models	3/2/09
Buick, GMC, Cadillac,Chevrolet, HUMMER, Pontiac, Saturn, Saab	President's Day Sale - 0% APR financing for up to 60 months, plus up to $2,000 cash back on most models	3/2/09
Chrysler, Dodge, Jeep	Employee Pricing Plus Plus sale - 0 % APR financing for 36 months, plus employee pricing discounts, plus cash back offers varying by model	3/2/09
Ford	0% APR financing for up to 60 months, up to $3,500 cash back many 2009s	3/31/09
Toyota	Cash back rebates varying by model	3/2/09
Mazda	0 - 0.9% APR financing for up to 60 months, up to $3,000 cash back, no payments for 90 days on many models	3/2/09
Mercedes-Benz	3.9% APR financing (36 months) on some models	3/2/09
Volkswagen	0% APR financing (60 months) on 2009 Passat and Routan, 3.9% APR financing on most models	3/2/09
Volvo	0.9% APR financing on 2008 models, up to $1,000 cash back on 2008 and 2009 models	3/31/09

Wal-Mart CEO sees no quick rebound for U.S. economy

The chief executive of Wal-Mart Stores said on Monday that he expects the U.S. economy to remain extraordinarily challenging in the first half of the year and he was not expecting a quick turnaround.

Lee Scott said the U.S. government's efforts to stimulate the economy should have "some impact," but he added: "I don't see anything that tells me it's going to turn around quickly."

"The second half of the year, you would hope, would be better," he said. "We all hope by next Christmas it certainly isn't any worse."

Wal-Mart, the discount giant, has been gaining market share in the past year as consumers seek out its low prices on items such as food and medicine to stretch limited budgets.

But a year-long recession, mounting job losses and tighter access to credit combined to produce the worst holiday sales season in nearly four decades, according to the International Council of Shopping Centers.

Wal-Mart was not immune to the harsh climate and last week posted lower-than-expected December sales and cut its fourth-quarter profit forecast.

Scott said this downturn may fundamentally change people's spending habits.

"I'm not necessarily convinced that just when all this liquidity and things hit, if you're going to have the same immediate desire to go back to consumption and debt," he said, referring to a potential U.S. government stimulus plan.

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Update 2/13/2009:

Wal-Mart Stores announced Tuesday that it is eliminating as many as 800 positions at its headquarters in an effort to reduce costs.

Most of nonfarm jobs lost in CA are housing related

In the year ending in November, 71 percent of the nonfarm jobs lost in California were housing-related.

Many of the nation's leading mortgage lenders -- Countrywide Financial, New Century Financial, IndyMac Bancorp, and Fremont General Corp. -- were based in California and have since been bought by larger banks or gone bankrupt.

Unemployment rate rose to 7.2% in December

NEW YORK (CNNMoney.com) -- The unemployment rate rose to 7.2% in December, the highest it has been since 1993.

The government also does report a so-called underemployment rate, which includes some part-time workers as well as people who have given up looking for work during the past year. That figure is now 13.5%.

Prior to 1994, all people who were "discouraged workers" were counted in the unemployment survey. But that's no longer the case. So he believes his number is more of an apples-to-apples comparison to some of the numbers cited about the peak level of unemployment during the Great Depression, which was around 25%.

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2/6/2009 update:

Nationwide: 7.6%
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3/6/2009:

Nationwide: 8.1%
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5/8/2009

Nationwide: 8.9%

U.S. consumer bankruptcy rose to 1.06M in 2008

The American Bankruptcy Institute said overall consumer filings rose to 1.06 million in 2008, compared with 801,840 during 2007. The ABI based its study on data from the National Bankruptcy Research Center.

2008 car sales

For the full year, GM's sales fell 23% to 2.95 million vehicles, Ford's declined 21% to 1.98 million and Toyota's U.S. sales declined 15% to 2.22 million vehicles. Chrysler was the No. 4 manufacturer in 2008, with sales of 1.45 million vehicles, down 30%.

12/2008 car sales down near 30%

The nation's six largest automakers all reported December sales declines of more than 30% Monday, capping the industry's worst year since 1992.

Chrysler -53% (from a year ago)
GM -31%
Toyota -37%
Ford -32%
Honda -35%
Nissan -31%
Mazda -27%

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Update: 2/13/2009

Last week, Toyota lowered its sales forecast for the current fiscal year to 7.08 million vehicles from an earlier projection of 8.87 million. It also said it expects to suffer a net loss this year for the first time since 1950.

In January, Toyota's U.S. sales fell 32%, compared with a 49% sales plunge for General Motors (GM, Fortune 500) and Ford's (F, Fortune 500) 40% decline. To top of page

SEC completes distribution of $42M fair fund for improper mutual fund practice

The SEC continued its recent string of Fair Funds distributions on Thursday, announcing the completion of a nearly $32 million Fair Fund distribution to current and former customers of Ameriprise Financial Services, Inc. (formerly known as American Express Financial Advisors Inc.) The SEC stated that approximately 575,000 investors were affected by what it alleged were improper mutual fund practices. On April 9, 2008, the SEC approved a distribution plan, and appointed Nelson S. Kibler as the fund administrator responsible for distributing the Fair Fund.

Since June 2008, the SEC has announced Fair Funds distributions in seven other settlements: Franklin-Templeton Investments ($49 million); Banc of America Capital Management ($103 million); Banc of America Securities ($26 million); Spear & Jackson ($5.6 million); Vivendi Universal ($48 million); Janus Capital Management ($18 million); and Putnam Investment Management ($40 million).