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Money in the News: Poverty and the Economy

CNN Money posts about how FEMA is almost out of disaster relief funds.

Federal Emergency Management Agency Administrator Craig Fugate said Monday that the agency’s fund has fallen to less than $800 million. With less that $1 billion on hand, the agency is only authorized to pay for emergency repairs. That means that long-term projects, like rebuilding roads, schools and other damaged structures in the tornado-ravaged southeastern states and Joplin, Mo., will have to wait.

In my opinion, FEMA is an excellent concept (though sometimes poorly executed), but people would do well to make sure they already have plans in motion and emergency supplies available themselves instead of relying on any sort of government organization to help them. Check out ready.gov and be prepared.

The Daily Beast posts about how poverty has become big business.

It’s expensive being poor. And with the misery index high and unemployment persistently high, that’s good news for those in the poverty business. The working poor have become Big Business—with the invention of the payday loan, rent to own, and a long list of diabolically clever ideas that entrepreneurs have devised to get hundreds-of-millions rich off those with thin wallets…

…The average payday customer pays between $600 and $700 a year in fees. Again, geography matters. The customer living in Tennessee or Kentucky, say, pays a fee that works out to 400 percent interest, but lenders in Missouri are allowed to charge a rate of 652 percent interest on the money they loan out. All told, payday customers collectively spend more than $7 billion a year in fees.

CNN Money posts about how the Department of Justice is blocking a merger between AT&T and T-Mobile because they think it will drive up prices for consumers.

The DOJ said the merger would lead to a situation in which just two companies — the AT&T-T-Mobile combination and Verizon Wireless — would dominate the mobile market. The new AT&T and Verizon would account for more than two-thirds of wireless subscribers and 78% of the wireless industry’s revenues.

Zero Passive Income posted about the state of the economy after the 9/11 attacks.

Much has transpired on the economic front since terrorists attacked the U.S. on Sept. 11, 2001. The nation weathered two recessions; homeowners suffered record foreclosures; workers faced double-digit unemployment; and investors trudged through a lost decade — stock markets aren’t much better off today than they were ten years ago.

CNN Money posts about how Bank of America is cutting 30,000 jobs.

Bank of America said Monday that it plans to eliminate 30,000 jobs as part of a plan to save $5 billion…

..The bank said it expects a “significant portion” of the reduction in headcount to occur through attrition and the elimination of unfilled positions. BofA had a total of 287,000 employees as of June 30.

You know, I wish tax cuts came in the form of job creation benefits.

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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