Monday, January 12th, 2009

Bush’s 8 Years Mark Weakest Economy Period in Decades

During President Bush’s 8-year reign, the gross domestic product—one of the most popular metrics of economic growth—grew at the slowest pace for a period of that length since the Truman administration (1945-53), according to the Washington Post.

In addition, the article details that over that period, the number of U.S. jobs only grew about 2 percent.

This is the slowest growth over an 8-year period since the data started being collected 70 years ago.

It was also reported that American’s incomes grew more slowly than any presidency since the 1960s—well, that is, other than George H. W. Bush’s presidency.

Maybe it runs in the family.

This news comes as more and more Americans are turning to filing bankruptcy in an effort to get out of debt or stop foreclosure.

Tags: bankruptcy, economy, GDP
Posted in Bankruptcy and the Economy | No Comments »

Monday, December 29th, 2008

Crime Spiking Thanks to Dumpy Economy

The Retail Industry Leaders Association conducted a survey of 52 chain retailers and found that about 80 percent said organized retail crime has jumped, with 50 percent also reporting that robberies and burglaries also increased.

The bottom line to this shoplifting increase is that people are hurting. Some are desperate and resort to swiping product rather than swiping their maxed-out credit cards.

While retail crime usually increases during the holiday season, law enforcers say the economic tailspin is flaming more frequent and more aggressive crimes.

Retailers are hurting too: last year retailers lost an average of almost $35 billion (1.4 percent of inventory) due to theft. Most say they can’t bear that kind of loss—especially because shopping is down all across the board.

Are you struggling to make ends meet?

You have options. Talk to a bankruptcy lawyer today about all of your debt-relief options.

Tags: bankruptcy, crime, economy
Posted in Bankruptcy and the Economy | No Comments »

Friday, December 26th, 2008

5 Reasons the U.S. Economy Will Be Better in ‘09

We may have real reasons to be hopeful for a better fiscal year in 2009. Read up on MSN’s top 5 reasons to believe we’re heading in the right direction:

Oil Prices Are Dropping. Those gas prices are going down and keeping more of your cash in your pocket. A JPMorgan Chase economist estimates the drop in oil prices represents “a boost equivalent to a $350 billion stimulus,” which could boost GDP by as much as 2 percentage points.
Mortgage Rates Are Sinking. Rates for a 30-year fixed mortgage fell to a low 5.9 percent—thanks in part to the Fed’s promise to purchase mortgage securities. This will likely help open up affordable housing and give current homeowners a chance to refinance. In the works: the Treasury is reportedly pondering a plan to drop mortgage rates as low as 4.5 percent for new homeowners.
The Fed Has Stepped In. The Fed is in overdrive as it does whatever it can to strengthen the economy by adding liquidity to the system. It’s pushed short-term interest rates to almost 0 percent and said it will buy debt securities in an effort to unfreeze credit lines. This means for next year, you’ll likely be paying a lot less for your borrowing.
Obama Will Be President. Over the next two years, it appears that Obama and the new Congress will spend between $750 billion and $1 trillion to boost the slumping economy. These injections will caffeinate the markets and likely create new jobs. We'll also probably be looking at tax cuts for the middle-class.
We’re America. America is flexible and innovative--we'll get through these tough times and become stronger because of them. The article argues that the core economy is far stronger than it was in the ‘70s thanks to higher productivity and better tax and regulatory practices.

Looking to Get Rid of Your Old Debt and Start Fresh in 2009?

If you’re struggling to make ends meet, facing foreclosure or having a tough time paying your bills, filing bankruptcy may be a good debt-relief option for you.

Talk to a local sponsoring bankruptcy lawyer today—for free and with no obligation.

Tags: bankruptcy, debt, economy
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Tuesday, December 23rd, 2008

Analysts: Economy Shrinking, Could Get Worse

The Commerce Department reported today that the gross domestic product (GDP), the economy’s total output of goods and services and a major metric of economic health, declined at an annual rate of 0.5 percent in the July/September quarter.

Analysts had estimated this drop a month ago and are now predicting that this current quarter will experience a much more dramatic decrease.

In fact, some analysts believe the GDP could drop as much as 6 percent this quarter—the largest decline in 26 years.

Analysts further calculate similar declines in the first and second quarter of 2009, but expect the economy to start growing next summer, with the recession likely ending in June 2009.

By that time, the recession would go on record as being the longest recession since World War II.

This GDP drop came after a 2.8 percent increase in the spring, which was largely accredited to the millions of dollars that was dished out through economic stimulus packages.

Breaking it Down

Economy has lost jobs every month in 2008 (totaling 1.9 million, with more than 0.5 million jobs lost in November)
Unemployment rate at 6.7 percent—highest in 15 years
Consumer spending dropped at an annual rate of 3.8 percent—biggest decline since 1980
Corporate profits fell 1.2 percent—fifth consecutive quarter drop
Residential construction fell at an annual rate of 16 percent
Non-residential construction fell 1.7 percent

Feeling the crunch? If you’re having a hard time paying bills and making ends meet, filing bankruptcy may help you eliminate or payoff your debt.

Tags: economy, GDP
Posted in Bankruptcy and the Economy | No Comments »

Tuesday, November 18th, 2008

If Cars Industry Goes, So Will Millions of Jobs

Moody’s Economy.com chief economist Mark Zandi estimates that 2.6 million people will lose their jobs if GM, Chrysler and Ford collapse and that the economy is too weak to handle such a big blow.

That number includes 250,000 people who are directly tied to the big three automakers and another 2.3 million people whose jobs are indirectly dependent on the big three.

Those indirectly affected workers come from the advertising, steel, glass, fabric, tire and electronic industries, including all those workers who have businesses near the auto plants.

Obviously the big three automakers are having a tough time. Without federal aid or a huge sales turnaround--(which is highly unlikely)--one or more of the big players will have to file bankruptcy.

Stay tuned to Total Bankruptcy blog for the news as it develops.

Tags: automakers, economy, file bankruptcy, jobs
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Wednesday, November 5th, 2008

Wounded Home Builders Lobby For Congress to Stimulate Market, Prevent Foreclosure

The National Association of Home Builders (NAHB), the home building industry’s trade association, spent $852,689 lobbying Congress in the third quarter.

Their goal was to support bills that would help homeowners in foreclosure and make it easier for potential homeowners to buy.

One of the bills included measures to expand affordable housing, reinstate seller-backed down payment aid, prevent foreclosures and stimulate the economy.

Falling home prices combined with tightened lending practices and less demand for homes have resulted in a bumpy ride for home builders.

In an effort to provoke homebuying and boost the economy, NAHB has been pressing lawmakers to create a U.S. economic stimulus package that would include incentives for people to buy homes.

They contend that previous efforts have failed and that it’s time for a new approach.

NAHB wants to reinstate programs that allow sellers to channel down-payment cash to money-strapped homebuyers through charities.

Congress had previously eliminated these programs because the homebuyers who took advantage of them wound up having high default rates.

In other efforts to boost the housing market, NAHB also spent money lobbying the departments of Commerce, Education, Energy, Transportation, Treasury, Agriculture and Justice and the Environmental Protection Agency (EPA) and Housing and Urban Development (HUD).

Tags: economic stimulus, economy, foreclosure
Posted in Mortgage Foreclosure | No Comments »

Monday, October 27th, 2008

Filing Bankruptcy Updates for October 27, 2008

Be in-the-know and check out the latest in bankruptcy news:

Mass Layoffs Cause Unemployment Rate to Spike Economists predict that more mass layoffs could soon push the unemployment rate to 7 percent. How could this affect you?

2008 Presidential Election: A Look at the Foreclosure Crisis As election day nears, Total Bankruptcy breaks down the candidate’s stances on financial issues that matter to you.

Poor Economy Spawns Violence We’ve all heard about how the economy is tied to violence.

So, what’s going on in the country today? Read about how in many cities, mental health hotlines are flooded with calls, domestic shelters are overflowing and counseling services are in high demand.

Economic Tidal Wave: Cities React to Dropping Property Values The financial crisis is hitting a lot of us hard. Total Bankruptcy examines how cities are reacting to the U.S.’s financial quandaries.

Tags: economy, filing bankruptcy, foreclosure, layoffs
Posted in Bankruptcy News and Events | 2 Comments »

Wednesday, October 8th, 2008

Britain Announces Massive Bank Bailout; Iceland On Brink of National Bankruptcy

The global economy is in crisis. Check out the latest global developments:

Britain’s Bailout

Britain just announced a $87.5 billion taxpayer bailout for the country’s eight largest banking institutions.

Prime Minister Gordon Brown said the plan took weeks to develop and, due to the current global fiscal calamity, it was imperative to roll it out today.

He continued to say that the bank recapitalization plan is meant to restore trust in the system and solidify the British economy. He said there may be a more comprehensive economic plan in the works for Britain and other European counties.

"Because these are also global problems, global action is required," Brown said. "This is a long haul and we have invited other European countries to consider proposals we have put to them this morning on medium-term funding and are in active consultation about how we can adopt a European-wide funding plan."

Iceland: From Bad to Worse

Britain's news came a day after Iceland took exceptional measures to prevent a “national bankruptcy”. It seized control of the country’s second-largest bank (which was the second government seizure in two weeks) and, to the shock of onlookers, asked to borrow $5.5 billion from Russia, which has not yet been granted.

This is a powerful political position for Russia to be in—a loan to Iceland demonstrates that Russia is financially strong and is willing to help financially distressed countries.

As a result of the banking crisis, the currency (krona) has plummeted, pushing inflation to double digits and forcing the central bank to raise its benchmark interest rate to more than 15 percent.

All of this rapid financial turmoil comes from a country that has one of the highest per capita incomes in the world.

Tags: bankruptcy, Britain, economy, Iceland
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Monday, October 6th, 2008

Foreclosure Today: The Tent City Trend

A recent CNN article discusses how tent cities have been springing up, “housing” people who have nowhere else to go.

The cities are growing as more people are losing their jobs and their homes due to the strangled economy. While loss of income can impact a family's ability to make monthly mortgage, their is help available for anyone wanting to fight foreclosure. Filing bankruptcy, for example, may be a way to protect your home even after foreclosure has begun.

In fact, the National Coalition for the Homeless reports that about 61 percent of local and state homeless coalitions have reported a rise in homelessness following the foreclosure crisis that began in 2007.

Tags: economy, foreclosure
Posted in Mortgage Foreclosure | No Comments »

Tuesday, September 23rd, 2008

Bankruptcy Hits Home, but Where are the Bailouts?

We’ve been talking a lot about big business and government bailouts—but what about the rest of us?

The government doesn’t appear to be handing billions of dollars over to the pockets of individual Americans who may need the help just as much as Fannie, Freddie or AIG.

Check out Total Bankruptcy’s new article, Dealing With the Aftermath of Student Loans, which highlights the very real financial problems college students are facing even before they head out into the “real world”.

Another recent article details the struggle of the low-income worker. Read about how a new report shows the number of low-income workers has risen due to the troubled American economy.

Let us not forget that bankruptcy is not only dominating the corporate scene, but also hitting us at home more than ever.

Tags: bankruptcy, economy, government bailouts
Posted in Bankruptcy and the Economy | No Comments »

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