WASHINGTON---- After consulting with Barack Obama, Democratic leaders are likely to call Congress back to work after the election in hopes of passing legislation that would include extended jobless benefits, money for food stamps and possibly a tax rebate, officials said Saturday.
Bush, allies seek to calm jittery investors
President Bush and financial leaders from nations rich and poor pledged Saturday to intensify their efforts to unblock a frozen financial system before it does more damage to an increasingly shaky global economy. While there were no concrete offers of new moves, Bush vowed anew that his administration was doing everything possible to halt the biggest market disruptions since the Great Depression.
Buying a used vehicle is not the time you want to learn a costly lesson.
Saturday, October 11, 2008
World powers pledge to combat crisis
Financial officials from the world's wealthiest industrial countries are pledging decisive action to deal with the biggest upheavals to hit the global financial system since the Great Depression. The big question is whether their one-page action plan will be enough to stop the bleeding as investors watch trillions of dollars of wealth melt away.
Wall Street capped one of its worst weeks ever with a wild session Friday that saw the Dow Jones industrials rocket within a 1,000-point range before closing with a relatively mild loss and the Nasdaq composite index actually end with a modest advance. Investors were still agonizing over frozen credit markets, but seven days of massive losses made many stocks tempting for traders looking for bargains.
The rippling financial crisis has sent consumers scurrying to the Internet for answers and advice. Online fraudsters are right behind, creating fake Web sites, spam, phishing attacks and malicious software code to take advantage of anxiety during the economic calamity.
The markets have been hit by the financial equivalent of the neutron bomb. It has left the companies standing but destroyed the value of the shares that represent their businesses.
CTA proposes fare hike
Most CTA users would have to dig deeper to use the city’s transit system, with agency officials announcing a proposed increase today. The increase would raise fares by as much as 50 cents a ride on the rail system and eliminate the 10 percent bonus on Chicago Cards.
The bad news just keeps coming — and despite all action by Congress, Treasury, the Fed, and now by central banks around the world, the markets shrug off the attempts to rescue the global economy. Once a selling panic is triggered, it’s hard to lure money back into the markets. Since we’ve never seen anything quite like this, and since this is a new and very interconnected world, there are many questions, and few simple answers.
Where did all the money go? That's the plaintive cry as investors check the balances in their 40l(k) plans or IRAs. Strangely, they never asked how the money landed in their account as stocks moved higher. That was taken for granted! Well, don't look around now to find out who has "your" money. It disappeared as magically as it arrived. It's gone to "money heaven!"
Living within her means has paid off big-time
Single mom Kathy Sullivan has been out of work for three years, but she's managing to make ends meet, even as gas and food prices have soared. Becoming a do-it-yourselfer, paying off her mortgage early and sticking to the philosophy that says, "If I can't pay for it yet, I can't buy it yet," have helped Sullivan as she focuses on training for a new career in computer forensics.
Get creative: Throw a fall feast despite famine
The economic outlook may be as gloomy as the ever-earlier dusk and chilling weather forecast, but that's no excuse not to do a little autumn entertaining. Tailgates and sports-TV parties, pre-election coffee klatches, neighborhood leaf-raking events, PTA meetings and other such gatherings fill the fall calendar.
Starbucks' practice of keeping a tap running at each of its 10,000 stores worldwide has environmentalists steamed.
Fed-up fan sells 'Cubs Loyalty' on eBay
Being a Cubs fan is like having an open wound that won't heal. But one fan may have found a way to let the scab form. Scot Moore, 30, a brokenhearted fan who grew up in Wheaton, is
auctioning off his "Cubs Loyalty" on eBay, with all proceeds going to
two theater companies in Minnesota, where he now lives.
Tuesday, October 7, 2008
Retailers hope pinch doesn't steal Christmas sales
Brother, can you spare an Elmo Live doll? Economic woes have the toy industry worried parents may cut back on kids' playthings at Christmas. The National Retail Federation predicts holiday sales will rise 2.2 percent to $470.4 billion, the slowest growth since 2002.
Monday, October 6, 2008
Prepare for the worst -- it might happen! Terry Savage: Now, reality sets in! The bailout/rescue plan will work only if banks take the liquidity that is coming their way and use it to make business and mortgage loans that will get the economy moving again. Over this weekend, the global credit markets will assess the bailout -- whether it is enough, whether the Treasury will move quickly to set up a mechanism to purchase the bad loans from the banks at reasonable prices and whether global banks feel confident enough to start lending again.
Despite a sickly economy and research showing salary increases will be pretty flat next year, there are steps workers can take to boost their odds of landing a bigger raise.
Sunday, October 5, 2008
Billion-dollar bailout brings tax breaks
The historic bailout bill urgently passed and signed into law Friday allows the Treasury almost complete discretion to purchase $700 billion of mortgage-backed securities and other troubled assets obstructing lending.
Fight over Wachovia intensifies
Wachovia Corp., at the center of a fight between Wells Fargo & Co.
and Citigroup Inc. over who will buy the beleaugered bank, is moving
ahead with its deal to sell itself to Wells Fargo -- while questions
arise about the damaging effects that prolonged litigation might have
on Wachovia.
Cosmetic surgeons see big drop in nips, tucks
The economy isn't the only thing sagging. So are faces, breasts and tummies, as would-be cosmetic-surgery patients increasingly decide against costly nips and tucks -- at least for now -- because of tough financial times.
Bailout Q&A Q. Why did Congress need to act so quickly?
Three members of Illinois' congressional delegation who opposed the rescue plan Monday voted for it Friday: Democratic Representatives Jesse L. Jackson Jr. and Bobby Rush, and Republican Judy Biggert.
Dear Fixer: I just bought a new 2008 Chevrolet Malibu. The car has an XM satellite radio in it, and I renewed my three-month trial for one year of service.
Sometimes "free" isn't free. Sometimes it'll cost you again and again.
Saturday, October 4, 2008
Prepare for the worst -- it might happen Terry Savage: Now, reality sets in! The bailout/rescue plan will work only if banks take the liquidity that is coming their way and use it to make business and mortgage loans that will get the economy moving again.
WASHINGTON---- With the economy on the brink of meltdown and elections looming, a reluctant Congress abruptly reversed course and approved a historic $700 billion government bailout of the battered financial industry on Friday. President Bush swiftly signed it.
There are bargains to be had. Alarmed by the financial meltdown, stores nationwide are slapping sale signs on everything from fall sweaters to furniture -- frantically trying to attract shoppers who are cutting back.
Wall Street ended an intensely volatile week with another sell-off Friday while credit markets remained strained after enthusiasm over the government's $700 billion financial rescue plan gave way to worries about obstacles still facing the economy.
Friday, October 3, 2008
Gas prices down 35 cents
Gasoline prices in the Chicago area are down more than 35 cents from mid-September and aren't expected to spike again over the next few months. The average price of unleaded regular gasoline was $3.902 Thursday, according to AAA-Chicago Motor Club.
Know where you stand Terry Savage: It's amazing how easily fear overcomes resolution, and how easily long-term investors turn into panicked sellers in a market decline. That's what happens when you don't have a plan that you understand, and a commitment to stick to the plan. Words like "diversification" or "asset allocation" seem to come from a different language.
Dear Fixer: The Gap has a 14-day price adjustment policy for items that go on sale after you purchase them. I purchased a skirt at a Gap store in Montreal, Canada, on Sept. 13 for $44 Canadian (just over $43 U.S.). After I got home, I saw the same item on sale at a Gap store in Vernon Hills for $29.99.
Chicago cab fares to increase in 2009
Chicago taxicab fares will be going up in 2009 for the first time in four years, but not because cabbies are threatening to “paralyze the city” if they don’t get an increase, a top mayoral aide said Wednesday. Consumer Services Commissioner Norma Reyes said she’s sympathetic to the United Taxidrivers Community Council’s request for a 16 percent fare increase.
Thursday, October 2, 2008
Who bought that house for $1.75 on eBay?
College finance student Joanne Smith, 30, became a homeowner via eBay Wednesday. Her winning bid: $1.75. The downside: The house is condemned, and it's in Saginaw, Mich., quite a commute for the Kennedy King College student who lives on the South Side. And she is liable for about $1,000 in back taxes and cleanup fees.
The ugly image of the “Repo man” who breaks into your garage and snatches your loan-delinquent car is about to be cleaned up in Chicago — at the industry’s behest.
Looking for ways to save on your telephone bill? The Citizens Utility Board, a nonprofit utility watchdog group will host a free phone-bill clinic and give out money-saving light bulbs today from 9 a.m. to 3 p.m. at ShoreBank's Chatham Banking Center, 7936 S. Cottage Grove.
Congress' failure to act on a financial rescue plan may represent the turning point in the United State's global financial leadership. While publicly arguing among themselves for petty political reasons, our elected representatives defaulted on their pivotal role in the financial structure of the world.
House rejects bailout: What should you do now?
The defeat of the mortgage bailout drove home a point with crystal clarity: Cash is king. If you've got it and wish to spend or invest it, opportunities abound.
Atty. Gen. Lisa Madigan claimed in a lawsuit filed Tuesday that a Pennsylvania company has been operating a mortgage rescue fraud scheme preying on homeowners on the verge of foreclosure.
Unemployment is rising, and with the economy slowing, it is likely many more will find themselves without income -- and possibly without health insurance. That's where the Consolidated Omnibus Budget Reconciliation Act comes in.
Girls just wanna be frugal
Noelle Provencial and her friends were commiserating over their expensive tastes and limited funds. They wanted to spend more time and dollars at Club Monaco and other stores, but their budgets just wouldn't allow, she said. They knew other fashion-forward types were in the same predicament: They want pricey pedis and Louboutins and to be seen sporting them in fabulous places. "We all talked about how we didn't have enough money to afford the fashions we wanted," Provencial said. "None of us had the tools to have that life."
BREAK THE BUCK | When the price of a share in a money-market mutual fund dips below the $1-per-share price it is supposed to hold. This happened earlier this month, causing the government to protect such funds.
Crisis is real: If we do nothing, workers get fired Terry Savage: The whole world is watching America, and we need to remember that this is the ultimate reality show -- with real and potentially disastrous consequences. You don't have to believe the politicians. They've cried "wolf" too many times, and have a history of turning big problems into expensive catastrophes while they grab power.
Sunday, September 28, 2008
Pelosi: Rescue is not a bailout but a 'buy-in'
Congressional leaders and the White House agreed Sunday to a $700 billion rescue of the ailing financial industry after lawmakers insisted on sharing spending controls with the Bush administration.
Bailout discussion continues David Roeder: The two-page proposal arrived Monday on Capitol Hill. It was audacious in its sweep and its demand: Pass this now, or the consequences will be on your head. Treasury Secretary Henry Paulson and President Bush were desperate to quarantine a financial fever devastating Wall Street.
Dear Readers: Thanks to all who came out last weekend for the free shredding event in Downers Grove to help prevent identity theft. About 700 cars came through the parking lot of West Suburban Bank to have their old documents shredded into oblivion. (Another shredding event was held on the same day at U.S. Cellular Field.)
Today's costly lesson is a little warning for those of you who do your Christmas shopping in August: Make sure the stores' return policies don't hit you like a New Year's Day hangover.
Saturday, September 27, 2008
Consumers caught in credit bind
When Deb Freitag applied for a credit card so she could replace her roof, her leaky refrigerator and her old dishwasher, she was offered a $1,000 line of credit, not the $5,000 she needed. When Mark Ryan finally scraped together more than enough to buy a home, he found that the mortgage a bank promised him earlier in the year was no longer available.
Chase tells WaMu customers it's 'business as usual'
Washington Mutual's collapse may have sent shock waves across an already very shaky financial landscape, but the bank's failure and quick buy-up by JPMorgan Chase & Co. will likely register as little more than a blip with area WaMu customers. "Their lives are going to be fine," said Christine Holevas, a JPMorgan Chase spokeswoman in Chicago.
Bailout deal breaks down
Urgent efforts to lash together a $700 billion rescue plan for the national economy appeared to be stalling Thursday night, hours after key lawmakers had declared they had reached a deal.
WASHINGTON---- John McCain and Barack Obama say presidential politics should have no role in the government's efforts to save the crippled financial system. Yet, each is playing his own politics toward the same goals -- showing leadership during crisis, getting credit for any solutions, and, ultimately, winning the presidency.
Home sales in the Chicago metropolitan area dropped 30.1 percent in August to 6,804 from a year earlier, and median prices dropped 5.7 percent to $251,250, according to the latest report from the Illinois Association of Realtors.
Parents are saving less for their children's college education this year than last year, and more people have saved nothing at all, according to a survey by the College Savings Foundation.
"Dad, if you live under my roof, you're going to have to follow my rules."
Tuesday, September 23, 2008
Bush confident Congress will quickly pass bailout
Strapped homeowners could get government help renegotiating their mortgages as part of the $700 billion financial bailout legislation taking shape in Congress. Congressional leaders and the Bush administration are haggling over details of the massive rescue plan, including Democrats' demand that executives at failing financial firms that receive the government help can't get ''golden parachutes'' on their way out the door.
Chicago area workers are expected to be hit with a nearly 9 percent increase in health care costs next year, and to help rein in employer costs, some companies are making workers pick up a bigger portion of the cost of coverage for spouses.
More good news: record jump for price of oil
Oil prices shot up Monday to their biggest one-day dollar gain ever, as traders worried that the $700 billion Wall Street bailout plan "will devalue the dollar, increase the debt and make commodities more expensive," in the words of Phil Flynn, energy analyst with Chicago's Alaron Trading Corp. The Commodity Futures Trading Commission, which polices commodities trading, was reviewing the spike to see whether anyone illegally manipulated the market.
Gotcha! That's what the market said to all those investors who panicked and sold out of fear on the way down last week. And guess what? The ones who panicked most were the professionals!
High gas prices drive many motorists to ride on (trains)
Gas prices drove Derek James out of his car and onto a Metra train. And though gas prices have fallen, James won't go back. "You get to meet people, and you don't have to be in traffic," said James, 32, who lives in south suburban Lansing and commutes downtown to his job at Swank Audio Visuals. "I can even take a nap."
While the Federal Deposit Insurance Corp. guarantees bank deposits up to $100,000 per person, per insured institution, what if you have a lot more cash than that?
Sunday, September 21, 2008
New confidence in markets comes at a big price Terry Savage: Suddenly on Friday, the markets turned around. What did the government really do? It took unprecedented steps to confront a $1 trillion problem that threatened to bring down not only the entire U.S. financial system, but destroy the interconnected global markets ranging from England to Japan, and from Russia to Canada. It's a very small financial world, after all.
Friday, September 19, 2008
Gold briefly surges as investors run for cover
Gold briefly shot above $900 an ounce Thursday as panicky investors poured money into safe-haven assets, but the metal later gave back its gains on reports that the government was apparently moving aggressively to steady the teetering financial system.
Thursday, September 18, 2008
Soaring gas prices spark surge of complaints
Gasoline prices spiked nearly 26 cents a gallon in the Chicago area in the last week and hit $4.59 a gallon for regular unleaded at some local stations. The latest run-up in prices, which happened as crude oil prices fell, has prompted nearly 700 complaint calls to an Illinois attorney general's office consumer fraud hotline since Friday, spokeswoman Nancy Bauer said Wednesday.
Chicago high school graduates last year earned $157 million in college scholarships, double the recorded amount from the previous year, officials said Wednesday.
How should investors be responding to the market turmoil in the wake of the Lehman Brothers bankruptcy filing, and is there cause to worry about pension funds?
Just when America was warming up to the idea of purchasing long-term care insurance to protect family assets from the devastating costs of custodial care, the three largest insurance companies have shaken up the market by raising prices on existing policies, not just on policies to be sold in the future. How should that impact your planning?
Q.It seems like everything costs more -- how can I still save for the future?
Sunday, September 14, 2008
Stroger seeks 1-year halt to home foreclosures
Cook County Board President Todd Stroger is calling for a yearlong moratorium on home foreclosures by lenders, leading an effort to gather signatures to present to state lawmakers. "People are coming up to him, crying and asking for help," Stroger spokesman Eugene Mullins said.
1-tank trips: Autumn awaits Lori Rackl: One of the few upsides to the end of summer is the start of leaf-peeping season. Take a peek at some of these nearby fall color hot spots within a tank of gas from Chicago, because you should be watching the colorful scenery, not the price at the pump: Sterved Rock, one of the Seven Wonders of Illinois, this state park near Utica boasts 18 canyons and some of the most vibrant foliage in the state. Visitors can picnic, camp and horseback ride, and special guided hikes lead you to the best of the park's autumn hues. Don't miss Fall Colors Weekend, Oct. 18-19.
Dear Fixer: We went to the Chicago Boat, RV & Outdoors Show at McCormick Place on Jan. 17 and had our photo taken with Devin Hester of the Chicago Bears.
Saturday, September 13, 2008
Oil's fall to $100 won't change frugal energy use
The worst oil shock since the 1970s has put a permanent mark on the American way of life that even a drop in oil's price below $100 a barrel won't erase. Public transportation is in. Hummers are out. Frugality is in. Wastefulness is out. Although oil prices dipped beneath the $100 mark Friday for the first time in five months, it still isn't cheap and Americans have long memories.
R txts 2 much $?
Question 4 U on txt msging. Why so $$$? The wildly popular way we now communicate is costing more than ever. And a lawsuit filed in Chicago federal court late last week claims it's no accident. The nation's largest cell phone providers are being accused of conspiring on text messaging pricing, doubling the average cost of a text to 20 cents since 2005.
