Posts Tagged ‘taxes’

Bartering Away the Recession

Posted February 5, 2009 by Bernz

As the daily economic news continues to paint a bleak picture of the health of American business, consumers seek out new ways to make the dollars stretch until the end of the month. A very old way of doing business is once again gaining popularity for its frugality and simplicity. Barter has been around ever since the beginning of commerce, only becoming more scarce as money took over as a means of trade. In the past several years, however, barter has become fashionable and organized barter networks have popped up all over the country.

Barter networks bring together those who have goods and services to trade and allow them to do so with pseudo-cash. These “barter dollars” accrue in members’ accounts and can be used to purchase other available items or services offered on the network. The bartering can be done face-to-face at barter meetings or, increasingly, on the internet.

Bartering helps the under-employed use their skills for compensation from customers who might not otherwise have the cash to spend. It then lets members purchase from any other member on the network with the “money” earned.

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Posted in Frugality, Misc, Saving Money | 2 Comments »

Will the “Bad Bank” Plan Work?

Posted January 30, 2009 by Bernz

As discussions continue in the White House and on Capitol Hill about what the next steps should be in helping banks survive the current economic crisis, one idea that keeps floating to the top is the “bad bank” plan. The Treasury or the Federal Deposit Insurance Corporation would set up a new bank to buy up all of the so-called “toxic” assets carried by major financial institutions. This would allow all of the other banks to cleanse their balance sheets and give them the liquidity they need to continue operating, according to the theory.

badbank1The “toxic” assets include the bundled derivatives and mortgage-backed securities that got the banks into trouble in the first place. The complexity of the assets became so great that banks, regulators, and auditors were unable to place a value on them as they could no longer be directly tied to individual mortgages. As mortgage failures increased during the recent real estate collapse, the assets’ worth looked dismal. The market for them dried up and banks were left holding the proverbial bag.

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Posted in Debt, Financial Goals, Misc | No Comments »


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