Every single public school teacher employed by the city of Detroit is being laid off, as well as all administrators. The public school system in the Motor City has major problems, and unless some of the financial troubles are resolved, Detroit will employ no teachers as of July 29. Individuals have been fleeing Detroit steadily for the past decade.
Motor City schools $327 million in debt
CNN states that every teacher and school administrator is being laid off in Detroit, Mich., in the public school system due to financial difficulties. To raise over $230 million to stay alive through August of the year, the Detroit School District issued emergency bonds in March while continuing to have its $327 million deficit. Though it was able to raise half a year’s spending budget, it was not sufficient, forcing drastic measures to be taken. First on the firing line were staff salaries. In Detroit, all 5,714 teachers are likely to get layoff notices. The school administrators will get them too. Detroit will not be paying any teacher or principal starting on July 29.
Leaving the city alone
For over a decade, Detroit has lost individuals after being an industrial powerhouse for so long. There are now the same numbers of individuals in Detroit as there was in 1910 as 25 percent of the population left in just the last 10 years. There isn’t anyone in a third of the city. It just sits empty, reports MSNBC. The school district has 10,000 fewer students than in 2001. State and local governments were able to hire financial managers that got broad powers with the Public Act 4 passed by Michigan legislature in March after the Detroit School District went into crisis mode. Robert Bobb is the emergency financial manager for the public schools in Detroit. As an emergency measure, he is using the law now.
Possibility of a job
Not all teachers who receive a layoff notice will actually turn out to be fired. Bobb, the emergency financial manager, is said to be restructuring Detroit schools to be able to bring them in line with declining enrollment. The collective bargaining between Detroit and the Detroit Federation of Teachers may also be redone by him. In 2009, an agreement similar to this was made where teachers lost salaries and health benefits. Several suspect this same thing will take place. If the fiscal problems are not controlled, Detroit may have to deal with a state takeover, report Reuters. By 2014, Detroit could have a much higher deficit than the current $155 million owed. It might reach $1.2 billion by 2015’s fiscal year. Just like Bobb took over Detroit schools, an emergency manager could possibly be assigned by the state to the city.
Information from
CNN
money.cnn.com/2011/04/15/news/economy/detroit_teachers/index.htm
MSNBC
msnbc.msn.com/id/42612424/ns/us_news-life/
Reuters
reuters.com/article/2011/04/12/us-detroit-budget-idUSTRE73B5GT20110412
Saturday, April 30, 2011
Wednesday, April 27, 2011
The majority of Americans still believe in real estate as a good investment
The majority of Americans still think real estate is the best long term financial investment to make. The value of the average house has dropped by nearly a 3rd since the housing recession began in late 2007, and nearly a third of all homes are worth less than the amount that is owed on them. Housing prices will recover eventually. It may take awhile, though.
More than 80 percent of Americans have confidence in real estate
A recent survey revealed that, regardless of the economic downturn, the majority of Americans nevertheless have confidence in housing as an investment. The Pew Research Center, according to Reuters, found that 81 percent of Americans felt real estate was still the best long term investment. More than 2,000 adults were surveyed by phone by the Social and Demographic Trends project, part of the Pew Research Center, and 37 percent “strongly agreed” that a house is the best long term financial investment, and 44 percent “somewhat agreed.” Most people believe that housing values will recovered within three years, however 23 percent said that they would not have bought their house if given the choice again.
April showers and May flowers
The current 2011 trend will hopefully be reversed in spring and summer when sales are expected to pick up, states MSNBC. The number of home sales and values may end up staying down though which realtors and housing industry analysts are worried about considering the amount of underwater mortgages. The National Association of Realtors has high hopes. It thinks that this year alone there can be a 7.4 percent increase in home sales. One of the biggest complaints from the real estate industry has been that lenders are being too stingy, and standing in the way of the recovery that would benefit them by being too conservative with loan capital.
Downturn fuels skeptics
The American Dream seems to be crumbling as there are even more skeptics of the real estate industry. An article on the USA Today website quoted Robert Shiller, co-founder of the real estate tracking Case-Shiller Index, as saying that individuals purchase houses for security or lifestyle reasons. There was another economist that talked about the return on a home. Typically, the return is around 6 percent. With all the fees and depressed costs, it might be even worse. A lot of people are not getting a return at all.
Information from
Reuters
reuters.com/article/2011/04/12/us-usa-housing-survey-idUSTRE73B0T220110412
MSNBC
msnbc.msn.com/id/42521765/ns/business-real_estate/
USA Today
usatoday.com/money/economy/housing/2011-03-20-home-ownership.htm
More than 80 percent of Americans have confidence in real estate
A recent survey revealed that, regardless of the economic downturn, the majority of Americans nevertheless have confidence in housing as an investment. The Pew Research Center, according to Reuters, found that 81 percent of Americans felt real estate was still the best long term investment. More than 2,000 adults were surveyed by phone by the Social and Demographic Trends project, part of the Pew Research Center, and 37 percent “strongly agreed” that a house is the best long term financial investment, and 44 percent “somewhat agreed.” Most people believe that housing values will recovered within three years, however 23 percent said that they would not have bought their house if given the choice again.
April showers and May flowers
The current 2011 trend will hopefully be reversed in spring and summer when sales are expected to pick up, states MSNBC. The number of home sales and values may end up staying down though which realtors and housing industry analysts are worried about considering the amount of underwater mortgages. The National Association of Realtors has high hopes. It thinks that this year alone there can be a 7.4 percent increase in home sales. One of the biggest complaints from the real estate industry has been that lenders are being too stingy, and standing in the way of the recovery that would benefit them by being too conservative with loan capital.
Downturn fuels skeptics
The American Dream seems to be crumbling as there are even more skeptics of the real estate industry. An article on the USA Today website quoted Robert Shiller, co-founder of the real estate tracking Case-Shiller Index, as saying that individuals purchase houses for security or lifestyle reasons. There was another economist that talked about the return on a home. Typically, the return is around 6 percent. With all the fees and depressed costs, it might be even worse. A lot of people are not getting a return at all.
Information from
Reuters
reuters.com/article/2011/04/12/us-usa-housing-survey-idUSTRE73B0T220110412
MSNBC
msnbc.msn.com/id/42521765/ns/business-real_estate/
USA Today
usatoday.com/money/economy/housing/2011-03-20-home-ownership.htm
Monday, April 25, 2011
Student loan debt anticipated to hit $1 trillion and above this year
As the college ranks swell, student loan debt grows. Students borrowing money for college have racked up a higher amount of debt than those people who have financed any number of things in life with credit cards. In fact, the amount of money individuals while students have borrowed to finance education and its relevant accessories is about to blow by $1 trillion and gain momentum into the future. The debate about “good debt” versus “bad debt” has intensified when it comes to student loans because of the outsize dollar amounts owed and the arduous future of loan repayments that lie ahead for most graduates.
Tuition increases mean an increase in student loan debt
Student loan debt was something less than half of the students graduating with a bachelor’s degree had in 1993. By 2008, the number of students graduating in debt had risen to two-thirds. The average debt students left with in 2009 were $24,000. The total amount of student loan debt is supposed to get to at least $1 trillion in 2011. It is expected to continue to grow rapidly. The Pell grants are ones the Republican Congress members want to cut. This is a financial aid lower-income students can get. The current generation of college students may have to deal with these changes as there have been tuition increases while universities and colleges are getting funding taken from them by the states. There has been more than just a rise in student loan debt. Student loan default has also increased. Credit damage, also as burdensome student loan payments for those who do not default will limit the range of possibilities when it comes to buying a home or having children.! Anyone who has kids may have to choose between paying off their student loan debt and saving for their children’s college education.
There is some good debt
When it comes to debt, student loans have always been considered “good debt,” as opposed to “bad debt” such as credit cards, auto loans or payday loans. It is considered bad to take out any debt though, now the recession is done. As long as the degree and salary from that degree are able to very easily pay back the debt, school loans are considered good debt even though the College Board explained a four year education is over $37,000 a year now. Most financial advisers suggest that individuals don’t borrow more than they could make the year after they graduate. The risk of student loan debt is there with that though. Finding a job that pays off the average cost of college with a degree in sociology or history is unlikely. There is less of a risk in degrees for instance medicine or engineering. More debt has to be taken out with them though.
Bottom line: debt is risky
When it comes to good debt versus bad debt, the bottom line these days is simple: all debt is bad if you can’t pay it off. Right now there is a huge default rate. In just for-profit schools, the rate is almost to 50 percent. Bankruptcy doesn’t get rid of student loans. For federally guaranteed student loans, the government can garnish wages, withhold tax refunds or dock Social Security payments. Anyone who pays the 15 percent of income for 25 years, or 10 years in a public service position, can have that debt forgiven which the Obama administration has done to help those in low paying jobs.
Information from
New York Times
nytimes.com/2011/04/12/education/12college.html?_r=1&emc=eta1
Creditcards.com
creditcards.com/credit-card-news/does-good-debt-still-exist-1264.php
care 2
care2.com/causes/education/blog/student-debt-for-college-likely-to-exceed-a-trillion-dollars/
Tuition increases mean an increase in student loan debt
Student loan debt was something less than half of the students graduating with a bachelor’s degree had in 1993. By 2008, the number of students graduating in debt had risen to two-thirds. The average debt students left with in 2009 were $24,000. The total amount of student loan debt is supposed to get to at least $1 trillion in 2011. It is expected to continue to grow rapidly. The Pell grants are ones the Republican Congress members want to cut. This is a financial aid lower-income students can get. The current generation of college students may have to deal with these changes as there have been tuition increases while universities and colleges are getting funding taken from them by the states. There has been more than just a rise in student loan debt. Student loan default has also increased. Credit damage, also as burdensome student loan payments for those who do not default will limit the range of possibilities when it comes to buying a home or having children.! Anyone who has kids may have to choose between paying off their student loan debt and saving for their children’s college education.
There is some good debt
When it comes to debt, student loans have always been considered “good debt,” as opposed to “bad debt” such as credit cards, auto loans or payday loans. It is considered bad to take out any debt though, now the recession is done. As long as the degree and salary from that degree are able to very easily pay back the debt, school loans are considered good debt even though the College Board explained a four year education is over $37,000 a year now. Most financial advisers suggest that individuals don’t borrow more than they could make the year after they graduate. The risk of student loan debt is there with that though. Finding a job that pays off the average cost of college with a degree in sociology or history is unlikely. There is less of a risk in degrees for instance medicine or engineering. More debt has to be taken out with them though.
Bottom line: debt is risky
When it comes to good debt versus bad debt, the bottom line these days is simple: all debt is bad if you can’t pay it off. Right now there is a huge default rate. In just for-profit schools, the rate is almost to 50 percent. Bankruptcy doesn’t get rid of student loans. For federally guaranteed student loans, the government can garnish wages, withhold tax refunds or dock Social Security payments. Anyone who pays the 15 percent of income for 25 years, or 10 years in a public service position, can have that debt forgiven which the Obama administration has done to help those in low paying jobs.
Information from
New York Times
nytimes.com/2011/04/12/education/12college.html?_r=1&emc=eta1
Creditcards.com
creditcards.com/credit-card-news/does-good-debt-still-exist-1264.php
care 2
care2.com/causes/education/blog/student-debt-for-college-likely-to-exceed-a-trillion-dollars/
Monday, April 4, 2011
Businesses try to hide cost increases by diminishing food packaging
A consequence of economic hardship is the steadily decreasing size of food product packaging. The rate of food and the size of product packaging have been heading in opposite directions. As shoppers start to notice they are paying more for less, the spin from food manufacturers is that smaller food product packaging is good for the environment and more convenient for customers.
The incredible shrinking food package
Diminishing food product packaging isn’t a recent phenomenon. Corporations can’t raise prices and still make a profit when unemployment is high and wages are low. The amount of product has been reduced in the past 20 years by food manufacturers to save money. During the latest recession, food product packaging started to noticeably shrink in the summer of 2008. As joblessness has remained high for years, food packaging continues to get smaller. There has been lots of food inflation recently though. This has brought on smaller packaging and higher prices to occur. Rising costs for energy and commodities for instance corn, cotton and sugar are expected to continue, and consumers can expect to pay even more to get even less in the future.
The spin on diminishing food packaging
Most food manufacturers know that consumers will notice rising prices. It is hit and misses with shrinking quantities though. Several companies have learned that if they can shrink food without a customer noticing, most will not notice. The box will look the very same on the shelf with the same height and width but with different depths. Glass jars could have larger indentations in the bottom to reduce volume. Chips and other salted snacks will be filled with more air and less product. However as food packaging continues to shrink, businesses are resorting to clever positioning as the reduction in quantity becomes extremely hard to hide. The New York Times explains that Procter & Gamble simply put a statement on the product calling it "Future Friendly" to sell more. It said that this is the case as there is less energy, water and packaging used in the product. Tropicana reduced the size of its orange juice container with an “easy-pour lid”, which the! company said retained the value of the product with added features.
Grocery budgets and unit cost
Labels aren’t read most of the time by consumers, food manufacturer's hope. According to the Times, a can of Chicken of the Sea albacore tuna now holds five ounces instead of six and costs more. Bags of Doritos, Tostitos and Fritos contain 20 percent less product than in 2009. Would you like to protect yourself? Then just check product before getting it. Do you want to know what you are paying for? Simply look at the rate per ounce or at least the unit cost. If you save grocery receipts over periods of time, you are able to then figure out how much more money you are being charged. Most grocery receipts show the quantity of items along with the price. Month to month receipts are enough to compare prices. You’ll really recognize now much money is being lost.
Articles cited
New York Times
nytimes.com/2011/03/29/business/29shrink.html?_r=1&emc=eta1
USA Today
usatoday.com/money/industries/food/2008-06-11-shrinking-sizes_N.htm
TIME
money.blogs.time.com/2011/03/29/all-new-packaging-less-food-same-price-what-a-deal/
The incredible shrinking food package
Diminishing food product packaging isn’t a recent phenomenon. Corporations can’t raise prices and still make a profit when unemployment is high and wages are low. The amount of product has been reduced in the past 20 years by food manufacturers to save money. During the latest recession, food product packaging started to noticeably shrink in the summer of 2008. As joblessness has remained high for years, food packaging continues to get smaller. There has been lots of food inflation recently though. This has brought on smaller packaging and higher prices to occur. Rising costs for energy and commodities for instance corn, cotton and sugar are expected to continue, and consumers can expect to pay even more to get even less in the future.
The spin on diminishing food packaging
Most food manufacturers know that consumers will notice rising prices. It is hit and misses with shrinking quantities though. Several companies have learned that if they can shrink food without a customer noticing, most will not notice. The box will look the very same on the shelf with the same height and width but with different depths. Glass jars could have larger indentations in the bottom to reduce volume. Chips and other salted snacks will be filled with more air and less product. However as food packaging continues to shrink, businesses are resorting to clever positioning as the reduction in quantity becomes extremely hard to hide. The New York Times explains that Procter & Gamble simply put a statement on the product calling it "Future Friendly" to sell more. It said that this is the case as there is less energy, water and packaging used in the product. Tropicana reduced the size of its orange juice container with an “easy-pour lid”, which the! company said retained the value of the product with added features.
Grocery budgets and unit cost
Labels aren’t read most of the time by consumers, food manufacturer's hope. According to the Times, a can of Chicken of the Sea albacore tuna now holds five ounces instead of six and costs more. Bags of Doritos, Tostitos and Fritos contain 20 percent less product than in 2009. Would you like to protect yourself? Then just check product before getting it. Do you want to know what you are paying for? Simply look at the rate per ounce or at least the unit cost. If you save grocery receipts over periods of time, you are able to then figure out how much more money you are being charged. Most grocery receipts show the quantity of items along with the price. Month to month receipts are enough to compare prices. You’ll really recognize now much money is being lost.
Articles cited
New York Times
nytimes.com/2011/03/29/business/29shrink.html?_r=1&emc=eta1
USA Today
usatoday.com/money/industries/food/2008-06-11-shrinking-sizes_N.htm
TIME
money.blogs.time.com/2011/03/29/all-new-packaging-less-food-same-price-what-a-deal/
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