tag:blogger.com,1999:blog-80027104980780721172024-02-20T15:31:23.617-05:00Middle Class PoorLife in the American Working ClassUnknownnoreply@blogger.comBlogger16125tag:blogger.com,1999:blog-8002710498078072117.post-57567946185306496022009-01-27T15:12:00.004-05:002009-01-27T15:40:07.833-05:00If That Don't Beat AllOkay, now here's something for you to chew on today (go ahead, spit out that tobacco). Not only are our tax dollars being spent on bailing out the big boys on Wall Street, but also on financing their lobbying efforts to keep the government regulators out of their hair so they can continue to do with our money what they want.<br /><br /><a href="http://robertreich.blogspot.com/2009/01/how-you-and-i-are-paying-wall-street-to.html">From Robert Reich</a>:<br /><br /><blockquote>Yet what's happened to the Wall Street campaign contributions and to the lobbyists? They're still going strong. We now know that many of the financial giants that have been bailed out by taxpayers continue to finance a platoon of Washington lobbyists, who are at this moment trying to influence TARP II and the next attempt to regulate Wall Street. In effect, your money and mine, and that of all other taxpayers, is paying these lobbyists to push Congress in a direction we have every reason to believe is not in our interests but in the continued interests of Wall Street. Citigroup, the recipient of $45 billion of taxpayer money so far, is still fielding "an army" of Washington lobbyists, according to the New York Times. Its lobbyists are working on a host of issues, including the bailout. In the fourth quarter of 2008, when it got its first infusion of bailout money, Citi spent $1.77million on lobbying fees. During the last three months of 2008, at least seven other firms receiving bailout funds (American Express, Capital One, Goldman Sachs, KeyCorp, Morgan Stanley, PNC and Bank of New York Mellon) lobbied the government about the bailout.<br /><br /><div style="text-align: left;"><br /></div></blockquote>And you want to know what they are doing with that money, besides paying millions for lobbying efforts? <a href="http://www.companypay.com/executive/compensation/citigroup-inc.asp?yr=2008">Not loaning to you and I, that's for sure.<br /></a><br />As Grandma used to say, <a href="http://www.learnenglishonline.org/en/resource/English_Idioms/id318.htm">"If that don't beat all..."</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-13640912734602171762009-01-18T02:12:00.028-05:002009-01-27T15:10:15.140-05:00Don't Bank on the BankSo you thought the bank bailout would provide some financial relief for average America? Well, don't bank on it.<br /><br />Back in November, while most American families were struggling to put food on their tables, bailed out bank executives were conferring on their plans for the $700 billion dollars of our taxpayer money. The first $350 billion received, no strings attached, with no requirements to disclose what the money is used for. At a conference held at the <a href="http://www.ritzcarlton.com/en/Properties/PalmBeach/PhotoTourPop.htm">Palm Beach Ritz Carlton,</a> an oceanfront luxury hotel, the bankers were wined and dined by investment analysts and enjoyed "evening cocktails by the pool and a golf outing at a nearby country club." (Price of a one night stay at the Ritz Carlton? Anywhere from $399 to $1149.) Interestingly enough, the conference was sponsored by the New York City based investment banking firm, <a href="http://www.sandleroneill.com/">Sandler O'Neill & Partners</a>.<br /><br />Among the bankers plans for the money? Not likely increased loans to consumers, but plans requiring the services of investment bankers. As reported by <a href="http://www.nytimes.com/2009/01/18/business/18bank.html?pagewanted=1&_r=1&emc=eta1">Mike McIntire in The New York Times</a>:<br /><br /><p></p><blockquote>Mark Fitzgibbon, research director at Sandler O’Neill & Partners, which sponsored the Palm Beach conference, said banks seemed to be allocating the bailout money for four general purposes: increased lending, absorbing losses, bolstering capital and “opportunistic acquisitions.” <span style="font-weight: bold;">He said those approaches made sense from a business perspective, even though they might not conform to popular expectations that the money would be immediately lent to consumers </span>(emphasis added).</blockquote><br />Well, of course those approaches make sense to Mr. Fitzgibbon. If the banks immediately lend to consumers, they don't need his services.<br /><br />And keep in mind it is not only troubled banks receiving bailout money, but healthy banks catering to the wealthy:<br /><br /><p></p><p></p><blockquote><p>Speaking at the <a href="http://topics.nytimes.com/top/news/business/companies/fbr-capital-markets-corporation/index.html?inline=nyt-org" title="More information about FBR Capital Markets Corporation">FBR Capital Markets</a> conference in New York in December, Walter M. Pressey, president of Boston Private Wealth Management, a healthy bank with a mostly affluent clientele, said there were no immediate plans to do much with the $154 million it received from the Treasury.</p><p>“With that capital in hand, not only do we feel comfortable that we can ride out the recession,” he said, “but we also feel that we’ll be in a position to take advantage of opportunities that present themselves once this recession is sorted out.”</p></blockquote>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-37954306987194512332009-01-01T10:19:00.004-05:002009-01-18T20:43:32.169-05:00Happy New Year!Just a quick post to say "Happy New Year" and share our plans for 2009. As my husband's pay continues to decrease each pay period, I'm still jobless after almost a year. We've tapped out borrowing from family and resorted to taking out a loan against my husband's dwindling 401K to be able to survive. We made the house payment for December, but not sure whether or not we can make the January payment. We've begun boxing up for the eventual move from our home, as we know we won't be here much longer. "Quit thinking so negatively," our daughter admonishes us. I try to explain there is a difference between negative thinking and realistic thinking.<br /><br />As we prepare for our move, we daily scan the "For Rent" section of the local newspaper. Lots of rentals in today's market, but the rent in our area is astronomical, normally running about the same amount as our current unaffordable house payment. Looks like we will be moving to an area where we really don't want to live, you know, what we think of as an "undesirable area". I don't want to do that to my son, have him move away from his friends, have to change schools, but we have to do what we have to do. The important thing, after all, is that we remain together as a family and I have faith we will survive our move intact. We do count our blessings and know there are much worse things that could befall us.<br /><br />If you are facing foreclosure, <a href="http://www.mortgagefit.com/foreclosure/17ways-avoid.html">here is a great source</a> of ideas on how to avoid it.<br /><br />God Bless in 2009!Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-8002710498078072117.post-19094423233395815142008-10-06T13:52:00.003-04:002009-01-18T20:44:31.111-05:00Time Flies When You Can't Pay the BillsI didn't realize how long I have been away from this blog. All I can say is "My how time flies when you can't pay the bills!" It's true. I know I just got my monthly credit card statement. You know, the one I haven't paid in several months. And I know I just got the past due notice not two days ago, and here it is DUE DATE again. Irresponsible I know, but I don't even open it anymore. Can't bear to see that HUGE interest rate, along with the over the limit fee and the late fee added to that progressively rising balance. But I derive some comfort from watching the news because I know I'm not alone.<br /><br />The good news is we worked out a plan with the mortgage company to get our house payment back on time. The bad news is we can't afford the increased payment we worked out. Hell, we couldn't afford the payment before we worked it out. And I'm beginning to realize why so many people are losing their homes to foreclosure. You begin to see the mortgage payment as a big black hole sucking up what little money you are making each month. The money you need to eat and pay medical costs and clothe and educate your children. The money you need to buy gas for your car to make sure the oil companies can keep gorging themselves on those big profits. The money that should be going into your shrinking 401K?<br /><br />So the government has bailed out the big boys on Wall Street and we are supposed to be comforted to know that hopefully (all fingers and toes crossed) the move will free up the credit markets so my husband will continue to have a job and a paycheck. So you, if lucky enough to still have a job, can keep it and continue to have your paycheck.<br /><br />Otherwise, freeing up credit won't help our family one iota. Because when you don't pay your bills on time, YOU CAN'T GET CREDIT!!!!! It is a big Catch-22. The mess on Wall Street led to my job loss, and we can no longer pay our outstanding obligations. Therefore, we are losing whatever little credit standing we had. And if we lose our home, our credit standing will be further damaged. Yes, my husband will hopefully still get a paycheck, we just won't have anywhere to live. Because who is going to rent to someone with crappy credit???<br /><br />Suggestions anyone?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-62960160326039918172008-05-23T09:34:00.011-04:002009-01-18T20:45:59.297-05:00Discouraging WordsSo I applied for a job on Tuesday. A local magazine was seeking someone to distribute their publication. <span style="font-weight: bold;">One </span>job. Over <span style="font-weight: bold;">thirty</span> applicants. Haven't heard back from them. Not surprised!<br /><br />This morning, in honor of the last day of school, I let my son sleep in and I drove him the 8 miles to school as opposed to his catching the very early bus. Passing the gas station, I noticed the price of one gallon of unleaded gasoline: <span style="font-weight: bold;">$3.90</span>.<br /><br />My husband got paid today. I paid the bills. Some of them were late and we got stabbed with those extra service charges. But, we have water, electricity and cable for another month. Woohoo! And we have $220 left to hold us over for another month. Hmmm... trying to figure out how to divy that up:<br />-Medications? (one daughter with no insurance = $200.00/month for prescriptions)<br />-Doctor visit? (daughter has to go to doctor this month = $100+ ).<br />-Food? Son is out of school for the summer so that means three meals a day at home. (Have you fed a growing boy lately??)<br />-Gas for the car?<br />I just can't decide which of these luxuries to splurge on....Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-26619120166978222212008-05-07T11:05:00.005-04:002008-05-07T11:43:03.022-04:00Truckers UnitedAs the price of gasoline inches toward the $4.00 per gallon mark in our neck of the woods, with every drop put into the tank, I want to stomp my feet in protest. And I can do that. But what's better. I can <a href="http://truckersandcitizensunited.theamericandriver.com/">stand up with the truckers</a> and say, "hey, wait a minute..."<br /><br />Perhaps my ignorance is showing, but could someone answer me this:<br /><br />Why are independent truckers barely staying afloat while big oil companies post record profits?<br /><br />Could it be the same reason why many families are losing their homes to foreclosure while<a href="http://www.youtube.com/watch?v=tn_vBr2shuc"> the government bails out the big banks?</a><br /><br />I don't know. That's why I asked.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8002710498078072117.post-20839814567861958522008-05-07T10:32:00.004-04:002008-05-07T10:48:01.786-04:00Drew Carey Tells Us to Stop Whining<a href="http://www.reason.tv/video/show/61.html">Drew Carey tells us Middle Class Americans to stop whining</a> because, according to him, we actually have it better than ever. Seems Mr. Carey thinks our bare cupboards are merely an illusion brought on by media brainwashing. <br /><br />Thanks, Mr. Carey. I'll serve that information to my family tonight at dinner. Right along with the spam.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8002710498078072117.post-55208805214574927042008-05-07T09:10:00.005-04:002008-05-07T10:18:33.122-04:00Eeking Out A LivingI've been away from this blog for several months, and you want to know: Where have you been? Well, you will remember back in January I was on the brink of losing my job, and I did. I lost my job. So, for the past several months, I have been eeking out a living.<br /><br />Here is how I'm doing it. I fell back on an almost-forgotten skill I learned as a child. I have been... sewing! Yes, I said sewing! How did I get from there to here?<br /><br />First of all, the prospects for a job in my field in the area where I live were not good. So I didn't even go in that direction. And I decided that if I was going to change the way I make a living, I was really going to change the way I make a living. So I figured, well, I'll just work for myself. And I'll work from home. That way, I don't have to buy gas, I don't have to buy nice clothes, I don't have to eat out, I don't have to stress over a "real" job. So, I started sewing. From about 7 in the morning until well into the night, handbags were flying off my sewing machine. And I was selling them - to my family, to my friends, to my neighbors, to my former co-workers. And was actually making a little money. Then I realized I needed to expand my customer base, so I found an internet site for selling handmade items and signed up in January. And guess what? I'm actually making a living... sewing! And, I have learned a few things along the way:<br /><br />-Middle Class America may be broke. But it is still spending money.<br />-Middle Class America may be broke. But Middle Class (Other Country) is not.<br /><br />I've also learned that there remain people in the world who appreciate handcrafted items. People who actually prefer handcrafted. And are willing to pay a little extra to buy something that isn't mass-produced in a factory. But, there are still some people who just don't get it.<br /><br />Example: I have put some of my hand-stamped market bags for sale at a local outdoor fruit and vegetable market. But they aren't selling. Reason? The shoppers comment that they can purchase a market bag at XXXMart for $2.00. Why pay $7.00 for mine? Yes, you can. You can support the big corporation headquartered out-of-state by buying their mass-produced, imported bags, or you can support a local resident by buying a bag handcrafted right here in the good ole' USA, right here in your own community. Your choice. Unfortunately, I've found most will go with the XXXMart bag every time. And the funny thing is, they are purchasing fruits and veggies from locals to support the local farmers and the local economy, but they don't apply this theory to other purchases. Go figure.<br /><br />So that is where I've been. And that is where I am. I wish I could tell you my endeavor as an entrepreneur has alleviated my financial woes and has taken me out of Middle Class Poor, but it just ain't so. And I don't foresee that happening. But I will tell you this. I feel more grounded than ever before because I am confident we will endure the hardships of living Middle Class, and I know we will survive. And in the meantime, we are living a little lighter. We aren't using as much fuel; we aren't making extravagant purchases; we are choosing to spend our dollars on local and handmade goods whenever possible; and, we are helping save the earth. One bag at the time.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8002710498078072117.post-87737758122900656172008-01-10T10:25:00.001-05:002008-05-07T10:52:34.873-04:00Spend Less, Save More? Right.The date of my final paycheck is fast approaching, and we continue to examine ways to cut back on spending. Always one to consult the experts for needed advice, here's what I've found. Most financial experts advise to spend less, save more. But as I scour the grocery ads while dutifully clipping coupons, I have to ask - just how realistic is this advice? <br /><br /><span style="font-weight:bold;">How can you spend less when there is less to spend?</span> With more and more of our income going toward food and fuel, how do we spend less? On what? Our thermostat is set at 68 degrees, we keep the fireplace burning as needed. We don't eat out; we use coupons and shop wisely for food, and the food continues to run out before the paycheck comes in.<br /><br />We don't spend money on outside entertainment. We don't buy anything that is unnecessary. We don't crank the car unnecessarily. We don't go to the doctor unless an emergency or life-threatening illness. We shop yard sales and thrift stores for clothing and other needs.<br /><br />So where should we cut back? Stop buying milk? Bread? Or maybe completely turn off the utilities? Sell our home and look for more affordable housing? Sell? Are you kidding, to who? Affordable housing? It doesn't exist around here. A month's rent is the same as a month's house payment.<br /><br />Yup, this little piece of advice can be filed under "Nonsense." And the next piece? The one about save more? It clearly belongs in the file marked "Outrageously Ridiculous."<br /><br /><span style="font-weight:bold;">How can you save money when you don't have money to save?</span> I don't know about you, but given a ten dollar bill and the choice between spending today to fill my rumbling, empty stomach or saving for the future - I am going to eat every time!Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-8002710498078072117.post-73176233023812061182007-12-27T17:43:00.000-05:002008-01-10T11:20:36.301-05:00Just Another StatisticSoon to be just another statistic, I will be a part of the percentage of unemployed. Fallout from the real estate crunch has led to the demise of my job, and although I only work part-time, we depend on my salary to survive. Already living frugally, there aren't many places left to cut back, so where to go from here?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-39580249984093988302007-12-17T22:16:00.001-05:002009-01-11T23:49:55.085-05:00Definition of Middle ClassSeems I'm not alone in the struggle to define middle class...<br /><br />Read <a href="http://thecaucus.blogs.nytimes.com/2007/12/17/if-youre-middle-class-please-stand-up/">Matt Bai's</a> blog.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-34467558438024335832007-12-11T21:29:00.000-05:002007-12-12T12:43:35.866-05:00Washington Favors Working ClassIn handling the country's finances, the folks in Washington are beginning to favor - resemble, that is - the working class. As they scurry around trying to solve that pesky little problem of the <a href="http://www.reuters.com/article/privateEquity/idUSN1156057320071212">Alternative Minimum Tax</a>, looks like our politicians will resort to a tactic created and mastered by the working class: Can't pay the bill this month (year)? Toss it over into next month's (year's) pile. And it is completely understandable, their refusal to raise taxes on those Wall Street financiers. Hell, we aren't giving up our beer and cigarette money either. <br /><br />That Rangel, though, he tried.<br /><br /><blockquote>He also proposed raising more AMT revenues through closing a tax loophole that allows hedge fund managers to defer taxes on their pay by sheltering it in offshore tax havens.</blockquote><br /><br />Maybe the working class could take a lesson from the hedge fund managers: tax man starts catching on to your money stash, send it offshore. You know, bottle it up and stick it in the creek.<br /><br />Eventually, our leaders will learn something else known all along by the working class, something Mama always said: <a href="http://www.bartleby.com/59/3/youcantsquee.html">"You can't squeeze blood from a turnip."</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-36262595978802453702007-12-09T13:11:00.000-05:002007-12-11T20:51:52.667-05:00Real Estate "Meltdown"While our leaders up in Washington try to mop up some of the mess made by those devilish subprime lenders, the real estate crunch hits job and home, and we adjust our grocery list accordingly. <br /><br />Meanwhile, according to the <a href="http://www.nypost.com/seven/12062007/realestate/what_meltdown__320937.htm">New York Post</a>, the "high end is riding higher than ever."<br /><br /><blockquote>A record deal was inked for an apartment below 57th Street - $31 million for a condo at One Madison Park, which has sold 70 of its 73 units. The largest condo conversion in the city's history is under way at Manhattan House. And the conversion of the Mark, which hasn't sent out contracts yet, is looking to set many new marks with units priced at more than $4,000 per square foot - including, perhaps, the first Manhattan apartment to sell for more than $100 million.<br /></blockquote><br /><br />Yes, <span style="font-weight:bold;">$4,000 per square foot</span>. Really. If, like me, you're wondering how anyone can pay such an exorbitant amount for square footage, read on...<br /><br /><blockquote>...there was a great sigh of relief when it was announced that even though Wall Street was battered, bonuses were still going to be massive (an estimated $38 billion, which would be a record).</blockquote><br /><br />And I'm relieved for them. Because if the "high end" is prospering, eventually some of that money will trickle down to the "low end". Right? Isn't that how it works? <br /><br />Well then, could someone tell them to turn on the faucet. It's getting awfully dry down here.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-21285896919519486062007-12-06T18:14:00.000-05:002007-12-12T07:09:22.093-05:00American Middle Class (In)StabilityThe non-partisan policy center, Demos and the Institute on Assets and Social Policy at Brandeis University, recently published the findings from their study on the stability of the American middle class. The title of their first report, "By a Thread", should give you some indication as to what the study revealed. If not, read the entire <a href="http://iasp.brandeis.edu/general/byathread.html">report</a>. If in the same sinking boat as our family, no life jackets at hand, you won't feel so alone.<br /><br />And while you're paddling around in the murky water of middle class, read Jeff Autero's <a href="http://www.savethemiddleclass.com/2007/11/middle-class-feels-squeeze.html#links">thoughts</a> on the subject.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-79590828576411071442007-12-06T18:00:00.001-05:002009-01-11T23:50:56.838-05:00Definition of Middle ClassAfter my first post, I began to question the <span style="font-style:italic;">middle class</span> status I had bestowed upon my family. I've always assumed we are <span style="font-style:italic;">middle class</span> America - you know, ordinary, everyday Joes, trying to have a better life than our parents, educate our children, have a little fun along the way. And although I don't care a diddle to what class we belong, I do care about accuracy. Had I portrayed us as something we are not? Are we really <span style="font-style:italic;">middle class</span>, or just poor like I've always suspected?<br /><br />I thought this would be easy enough to answer. There's a chart somewhere, you look at the chart, see where you fall, and there you have it. So I do what any middle class American would do when in doubt. I Google it. Ha! Seems <span style="font-weight:bold;">nobody</span> knows the meaning of <span style="font-style:italic;">middle class</span>. Bet you're thinking the same thing as me: Come on, you're kidding, we can extract stem cells from embryos, but we can't define <span style="font-style:italic;">middle class</span>? Right, and surprisingly enough, even the politicians who represent the middle class (wink, wink), well, they can't define it either:<br /><br />From <a href="http://www.msnbc.msn.com/id/22024647/">MSNBC:</a><br /><br /><blockquote>Every politician in the U.S. presidential race claimed to be fighting for the middle class, and it seemed a sound strategy -- until the Democratic front-runners tried to define who, exactly, was middle class.<br /><br />While Sens. Hillary Clinton and Barack Obama couldn't agree during a recent debate whether someone earning $97,500 or more could be considered middle class, voters have little difficulty judging who isn't -- the presidential candidates themselves.</blockquote><br /><br />Bless <a href="http://en.wikipedia.org/wiki/American_middle_class">Wikipedia's </a> <span style="font-style:italic;"></span> little heart as it provides the answer I'm looking for: Due to our lack of education, influence, and importance, we fall squarely in <span style="font-style:italic;">working class</span>, the class not paid to think:<br /><br /><blockquote>They are also not commonly paid to think, and their thoughts are not often sought by their employer organizations or clients...</blockquote><br /><br />If class matters to you, head on over to <a href="http://www.classmatters.org/working_definitions.php">Class Matters</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8002710498078072117.post-78084634243904768092007-12-06T07:37:00.000-05:002007-12-10T17:09:01.916-05:00Leaving Behind the American DreamMy husband and I have spent our twenty-plus years together striving to rise the economic ranks from <span style="font-style:italic;">working class poor</span> to <span style="font-style:italic;">middle class</span>. Both of us experienced meager living during our childhood years, but believed that hard work and perseverance assured us a more comfortable lifestyle than we, or our parents, had known in the past. A middle class lifestyle. You know, the American Dream. So in our early years together, as our parents cheered us on, we took on well-paying jobs, became homeowners in our 20's, housed two cars in the garage, and attempted to educate our children while providing them some of the material possessions we lacked while growing up. <br /><br />Now middle-aged, we can proclaim that we are, by some definitions, <span style="font-style:italic;"></span> indeed middle class<span our annuastyle="font-style:italic;"></span>. We live in a nice home in a safe neighborhood. We provide our school-aged son with access to a good school district. We dress decent enough, drive cars that are paid for, take a small vacation every year, and our annual income falls well above the national median. Isn't this <span style="font-style:italic;">middle class</span> America? Are we not living the American Dream?<br /><br />Yes, we are. But it is ironic that in the daily struggle to remain <span style="font-style:italic;">middle class</span> and keep the Dream alive for ourselves, we are merely repeating the lifestyle our parents knew so well as the <span style="font-style:italic;">working class poor.</span> As they struggled to put food on the table, so do we. As they struggled to educate their children, so do we. Yes, we have bigger homes, more possessions. But still, we struggle. Take a closer look at our family. We live in a home we can no longer afford, we can't meet our financial obligations on a timely basis, we live from paycheck to paycheck. We have nothing in savings, no education fund for our son, our oldest child has no health insurance, and our kitchen cupboards are all but bare. We live on the brink of financial disaster, and the next unexpected crisis will be the proverbial straw to break the camel's back.<br /><br />We have become the <span style="font-style:italic;">middle class poor</span>.Unknownnoreply@blogger.com2