For Jiddy

[ryr8828]

I found this letter to the editor this morning:

Lacking credibility

To the Editor:

http://images.townnews.com/thesouthern.com/images/advertising_head.gif (http://www.southernillinoisan.com/ads/) http://adsys.townnews.com/76061305/creative/thesouthern.com/opinions+story_middle/93930-1195557964.gif (http://adsys.townnews.com/c94603801/creative/thesouthern.com/opinions+story_middle/93930-1195557964.gif?r=http://agent.allstate.com/JimRenshaw/Welcome) http://images.townnews.com/thesouthern.com/images/advertising_foot.gif (http://www.southernillinoisan.com/ads/) An article in the Oct. 20 edition of The Southern Illinoisan carried a very odd item titled "Working poor stretching paychecks to limit." There was no news service credit and the facts were given without any source. Did they come from a reputable research organization, a government agency, or a special-interest advocacy group? The story sounded like typical political gloom and doom.

We all like to tell war stories about how we heroically prevail against the unbelievable hardships of our economy. There is a difference, however, between anecdotal snapshots and a systematic overview. There is a disconnect between the negative view of your article and the general tone of reputable data. The U.S. economy generates the highest average income per person of all large economies. Our unemployment rate is one of the lowest, achieved without significant inflation. The economy is sufficiently strong to attract hundreds of thousands of immigrants each year - people who have a good idea of where to look for a better life.

I doubt that some "Americans are increasingly unable to stretch their dollars to the next payday ?" Coping skills aren't what they used to be. Our politicians are falling over each other to bail out unfortunate families who bought $500,000 houses they could not afford. Where are all the supposed benefits from the minimum wage?

The topic is too broad for a brief letter. Your article lacks credibility. Document your assertions or straighten them out.

Paul Trescott

Professor of Economics Emeritus, SIUC
http://www.southernillinoisan.com/articles/2007/11/20/opinions/voice_of_the_reader/22154595.txt

I left the ad in there on purpose, I thought it fitting.
Then I went on a search for the article he's complaining about, it's in the next post

[ryr8828]

I couldn't find the article on the same website as the letter to the editor, but I do believe this to be it:

Personal finance - Americans stretching paychecks to the limit
By ANNE D'INNOCENZIO of the Associated Press

http://www.missoulian.com/art/pixel.gif

NEW YORK - The calculus of living paycheck to paycheck in America is getting harder.

What used to last four days might last half that long now. Pay the gas bill, but skip breakfast. Eat less for lunch so the kids can have a healthy dinner.

Across the nation, Americans are increasingly unable to stretch their dollars to the next payday as they juggle higher rent, food and energy bills. It's starting to affect middle-income working families as well as the poor, and has reached the point of affecting day-to-day calculations of merchants like Wal-Mart Stores Inc., 7-Eleven Inc. and Family Dollar Stores Inc.
Food pantries, which distribute foodstuffs to the needy, are reporting severe shortages and reduced government funding at the very time that they are seeing a surge of new people seeking their help.

While economists debate whether the country is headed for a recession, some say the financial stress is already the worst since the last downturn at the start of this decade.

From Family Dollar to Wal-Mart, merchants have adjusted their product mix and pricing accordingly. Sales data show a marked and more prolonged drop in spending in the days before shoppers get their paychecks, when they buy only the barest essentials before splurging around payday.

"It's pretty pronounced," said Kiley Rawlins, a spokeswoman at Family Dollar. "It seems like to us, customers are running out of food products, paper towels sooner in the month."

Wal-Mart, the world's largest retailer, said the imbalance in spending before and after payday in July was the biggest it has ever seen, though the drop-off wasn't as steep in August.

And 7-Eleven says its grocery sales have jumped

12 percent to 13 percent over the past year, compared with only slight increases for non-necessities like gloves and toys. Shoppers can't afford to load up at the supermarket and are going to the most convenient places to buy emergency food items like milk and eggs.

"It even costs more to get the basics like soap and laundry detergent," said Michelle Grassia, who lives with her husband and three teenage children in the Bedford-Stuyvesant section of Brooklyn, N.Y.

Her husband's check from his job at a grocery store used to last four days. "Now, it lasts only two," she said.

To make up the difference, Grassia buys one gallon of milk a week instead of three. She sometimes skips breakfast and lunch to make sure there's enough food for her children. She cooks with a hot plate because gas is too expensive. And she depends more than ever on the bags of free vegetables and powdered milk from a local food pantry.

Grassia's story is neither new nor unique. With the fastest-rising food and energy prices since the 1980s, low-income consumers are stretching their budgets by eating cheap foods like peanut butter and pasta.

Industry analysts and some economists fear the strain will get worse as people are hit with higher home heating bills this winter and mortgage rates go up.

It's bad enough already for 85-year-old Dominica Hoffman.

She gets $1,400 a month in pension and Social Security from her days in the garment industry. After paying $500 in rent on an apartment in Pennsauken, N.J., and shelling out money for food, gas and other expenses, she's broke by the end of the month. She's had to cut fruits and vegetables from her grocery order - and that's even with financial help from her children.

"Everything is up," she said.

Many consumers, particularly those making less than $30,000 a year, are cutting spending on nutritious food like milk and vegetables, and analysts fear they're further skimping on basic medical care and other critical services.

Coupon-clipping just isn't enough.

"The reality of hunger is right here," said the Rev. Melony Samuels, director of the BedStuy Campaign against Hunger, a church-affiliated food pantry in Brooklyn.

The pantry scrambled to feed 5,000 new families over the past 12 months, up almost 70 percent from 3,000 the year before.

"I am shocked to see such numbers," Samuels said, "and I am really concerned that this is just the beginning of what we are going to see."

In the past three months, Samuels has seen more clients in higher-paying jobs - the $35,000 range - line up for food as the fallout of the subprime mortgage woes takes hold.

The Regional Food Bank of Northeastern New York, which covers 23 counties in New York State, cited a

30 percent rise in visitors in the first nine months of this year, compared with 2006.

Maureen Schnellmann, senior director of food and nutrition programs at the American Red Cross Food Pantry in Boston, reported a 30 percent increase from January through August over last year.

Until a few months ago, Dellria Seales, a home care assistant, was just getting by living with her daughter, a hairdresser, and two grandchildren in a one-bedroom apartment for $750 a month. But a knee injury in January forced her to quit her job, leaving her at the mercy of Samuels' pantry because most of her daughter's $1,200 a month income goes to rent, energy and food costs.

"I need it. Without it, we wouldn't survive," Seales said as she picked up carrots and bananas.

John Vogel, a professor at Dartmouth College's Tuck School of Business, worries that the squeeze will lead to a less nutritious diet and inadequate medical or child care.

In the meantime, rising costs show no signs of abating.

Gas prices hit a record nationwide average of $3.23 per gallon in late May before receding a little, though prices are expected to soar again later this year. Food costs have increased 4.5 percent over the past 12 months, partly because of higher fuel costs. Egg prices were 44 percent higher, while milk was up 21.3 percent over the past 12 months to nearly $4 a gallon, according to the Bureau of Labor Statistics.

The average family of four is spending anywhere from $7 to $10 extra a week - $40 more a month - on groceries alone, compared to a year ago, according to retail consultant Burt Flickinger III.

And while overall wage growth is a solid 4.1 percent over the past 12 months, economists say the increases are mostly for the top earners.

Retailers started noticing the strain in late spring and early summer as they were monitoring the spending around the paycheck cycle.

Wal-Mart and Family Dollar key on the first week of the month, when government checks like Social Security and public assistance generally hit consumers' mailboxes.

7-Eleven, whose customers are more diverse, looks at paycheck cycles in specific markets dominated by a major employer, such as General Motors in Detroit, to discern trends in shopping.

To economize, shoppers are going for less expensive food.

"They're buying more peanut butter and pasta. And they're going for hamburger meat," Flickinger, the retail consultant, said. "They're trying to outsmart the store by looking for deep discounts at the end of the month."

He said the last time he saw this was 2000-2001, when the dot-com bubble burst and the economy went into a recession after massive layoffs.

For now, low-price retailers are readjusting their merchandising and pricing.

Wal-Mart is becoming more aggressive on discounting. It announced Thursday it is expanding price cuts to 15,000 items, ranging from Motts apple juice and Progresso soups to women's fleece tops, heading into the holidays.

Family Dollar, whose food offerings were limited to candy and snacks until two years ago, has expanded its mix of groceries like fruit cups, cereal and such refrigerated items as milk and ice cream while cutting back on shoes. This summer the chain began accepting food stamps.

Food pantries are also getting creative. Samuels said her church, Full Gospel Tabernacle of Faith, just started offering free cooking classes to teach clients who are diabetic or have other health conditions how to prepare vegetables like squash. It's also offering free exercise classes.

"We are trying to make them health conscious," Samuels said. "It's not right to give them just anything. Our mantra is eat well and live well."

Associated Press writers Geoff Mulvihill in Mount Laurel, N.J., and Terry Tang in Phoenix, Ariz., contributed to this report.
http://www.missoulian.com/articles/2007/11/12/business/biz48.txt

[ryr8828]

Here's another article Jiddy will like:

Despite mortgage crisis, local housing market still growing

By Matt Hawkins, Marion Daily Republican, mhawkins@mariondaily.com
Published: Monday, November 19, 2007 10:56 AM CST
E-mail this story (http://www.mariondaily.com/articles/2007/11/19/news/news02.eml) | Print this page (http://www.mariondaily.com/articles/2007/11/19/news/news02.prt)



MARION — Despite concerns of the West Coast’s housing mortage crisis fueling the nation’s economy, Midwestern housing markets — including the Route 13 corridor through Saline, Williamson and Jackson counties — are in better shape than western counterparts.

The Southern Illinois market has slowed, but not nearly to the extent of the West Coast. Carterville ReMax broker Jeff Cross said this region was going strong in 2005, then large-scope concerns like the economy and gas prices began to hurt consumer confidence and slow down the market.

Still, the Route 13 corridor between Harrisburg and Murphysboro continues to grow.

“Real estate is more of a regional event,” Cross said. “There are different markets wherever you look. To say it’s bad in Florida and therefore it’s bad in Illinois isn’t understanding the situation at all. The only connection is what people see on the nightly news.”

Steve Cook, Marion Farmer’s State Bank community president, thought the western situation had little impact on his lending business.

“We hear people talk that a lot of houses are on the market, but as far as our bank is concerned, we’ve got a strong demand and a lot of mortgage business,” he said. “I don’t forsee major market problems coming down the road. Obviously, we’re subject to the overall market condidtions and interest rates. If there were a great spike in rates, it would affect our business.”


Like the stock market, real estate business fluctuates on a wide range of factors. Consumer attitudes, including confidence, play stronger roles in Southern Illinois than other factors.

“Because we don’t have an industry base, people purchase for other reasons,” Cross said. “They buy simply because the time is right, interest rates aren’t too bad and the employment situation is stable so then is the time to build or buy a house.”

Current concerns holding back the market range from the variety of national issues to Herrin’s Maytag plant closing.


What Cross called a “domino effect” is stagnating the Southern Illinois market. Plenty homes are for sale, but there are few buyers. In some instances, people are waiting to sell one home before purchasing anothers.

“It’s the same story in every town around here,” he said. “At some point you have to have new money coming in or have someone able to sell coming here who can break the chain and they’ll buy something, and in doing that someone else will buy.”

Home values and risky bank procedures fueled the West Coast problem. With high values — double or triple Midwest values — people had to find the purchasing money.


Banks provided the financing, but often with adjustable rate mortgages where the interest rate increased over time or minimal downpayments. Now the higher interest rates are pushing mortage payments beyond what homeowners can afford.

“People wanting to get into homes in these areas would worry about tomorrow tomorrow. Now is tomorrow and folks can’t make the adjustment,” Cross said. “Unfortunately that spilled over to our area even though our lenders don’t do that and real estate maintains a better value and people don’t need to go into those kinds of loans in the first place.”

Midwestern conservatism helped the region avoid subprime lending problems as banks haven’t offered risky loans.


“Most lending organizations here are locally owned and aren’t willing to get into high-risk lending practices,” Cook said. “Being a smaller area, I don’t think we had the pressures or opportunities. Smaller banks weren’t interested in supbrime lending. It was just too risky and that’s proven itself to be the case.”

According to the ReMax forecast for the Midwest, the staus quo is expected through the winter. The market should start to bounce back with the second quarter’s warmer weather.

“That’s a no-brainer because things get better here in the spring,” Cross said. “It’s the traditional building season. People move when schools get out. When all that comes around again, the Midwest should see some relief.”


However, the regions most heavily hit with the lending crisis could stay in the quagmire through 2008.







http://www.mariondaily.com/articles/2007/11/19/news/news02.txt

[Jiddy78]

That last one has some of my favorite type of palabra: "It won't happen to me" or "Our area is unique, not like that other area"

Plant that red raspberry rhubarb tree in the yard yet ryr? (Say that 7 times fast)

[ryr8828]

I planted bradford pears and pin oaks.

[Jiddy78]

I planted bradford pears and pin oaks.

I have 3 orange trees, a bird of paradise, and 3 sets of 3 palm trees...I have a well too...That's nice...'cept the motor has been broken since I bought the place....Soon enough...

[ryr8828]

I have 3 orange trees, a bird of paradise, and 3 sets of 3 palm trees...I have a well too...That's nice...'cept the motor has been broken since I bought the place....Soon enough...

How far down you have to go to hit water there, 18 inches?

I had a well about 40 feet deep. I filled it in.

[Jiddy78]

How far down you have to go to hit water there, 18 inches?

I had a well about 40 feet deep. I filled it in.

I don't know...I didn't dig it...but I'd venture to say you hit sand not more than a few feet...Water can't be far behind...I wish the dang thing worked from the get go...I could water my grass during water restrictions...not to mention it would be free.

[IBC]

I found this letter to the editor this morning:

Lacking credibility

To the Editor:

http://images.townnews.com/thesouthern.com/images/advertising_head.gif (http://www.southernillinoisan.com/ads/) http://adsys.townnews.com/76061305/creative/thesouthern.com/opinions+story_middle/93930-1195557964.gif (http://adsys.townnews.com/c94603801/creative/thesouthern.com/opinions+story_middle/93930-1195557964.gif?r=http://agent.allstate.com/JimRenshaw/Welcome) http://images.townnews.com/thesouthern.com/images/advertising_foot.gif (http://www.southernillinoisan.com/ads/) An article in the Oct. 20 edition of The Southern Illinoisan carried a very odd item titled "Working poor stretching paychecks to limit." There was no news service credit and the facts were given without any source. Did they come from a reputable research organization, a government agency, or a special-interest advocacy group? The story sounded like typical political gloom and doom.

We all like to tell war stories about how we heroically prevail against the unbelievable hardships of our economy. There is a difference, however, between anecdotal snapshots and a systematic overview. There is a disconnect between the negative view of your article and the general tone of reputable data. The U.S. economy generates the highest average income per person of all large economies. Our unemployment rate is one of the lowest, achieved without significant inflation. The economy is sufficiently strong to attract hundreds of thousands of immigrants each year - people who have a good idea of where to look for a better life.

I doubt that some "Americans are increasingly unable to stretch their dollars to the next payday ?" Coping skills aren't what they used to be. Our politicians are falling over each other to bail out unfortunate families who bought $500,000 houses they could not afford. Where are all the supposed benefits from the minimum wage?

The topic is too broad for a brief letter. Your article lacks credibility. Document your assertions or straighten them out.

Paul Trescott

Professor of Economics Emeritus, SIUC
http://www.southernillinoisan.com/articles/2007/11/20/opinions/voice_of_the_reader/22154595.txt

I left the ad in there on purpose, I thought it fitting.
Then I went on a search for the article he's complaining about, it's in the next post

Where are we at in median income you ask? Couldn't find it, nor any data corroborating this guys, but I suspect it to be true.

I did find this:

http://www.nationmaster.com/graph/eco_pop_bel_med_inc-economy-population-below-median-income

:D

[IBC]

Also, nobody uses average to describe a countries income, or communities home prices, or stats like this. Median is considered much better and I suspect this professor knows it.