Economic Problems Hinged on 2005 Reform

The Federal Reserve Bank of New York has published a study that states the housing mess can be directly linked to the passage of the 2005 Bankruptcy Abuse Reform, which made it harder for individuals to escape their creditors.

We argue that the 2005 bankruptcy abuse reform (BAR) contributed to the surge in subprime foreclosures that followed its passage. Before BAR, distressed mortgagors could free up income by filing bankruptcy and having their unsecured debts discharged. BAR blocks that maneuver for better-off filers by way of a means test. We identify the effects of BAR using state home equity bankruptcy exemptions; filers in low-exemption states were not very protected before BAR, so they would be less affected by the reform. Difference-in-difference regressions confirm four predictions implied by that identification strategy. Our findings add to research trying to explain the surge in subprime foreclosures and to a broader literature on household bankruptcy demand and credit supply.

Download the full paper here. It explains in detail how foreclosures increased as a result of that legislation.

ETV to Broadcast "Finding Money For College"

While rescue packages and financial market instability continue to color the fiscal landscape, ETV and the South Carolina Department of Education offer hopeful options during the annual broadcast of Finding Money for College.

This timely program provides students and parents with valuable information on ways to pay for a college education. The show airs LIVE on Sunday, Jan. 25 at 5 p.m. on all ETV channels.

The two-hour telecast features financial aid professionals from public and private colleges and universities in South Carolina. In addition, guidance counselors will offer advice and representatives from the South Carolina Higher Education Tuition Grants, South Carolina Student Loan Corporation and South Carolina Commission on Higher Education answer questions on accessing scholarships, grants and loans.

Viewers are invited to call in with questions during the live broadcast via a toll-free number that will be announced on air.

Poster Design Contest Extended

ATTENTION ARTISTS:
Based on a large number of requests from artists interested in submitting work for the Charleston Harbor Fest Poster Contest we have extended the deadline for entries to Tuesday, January 6, 2009. Application and mounted artwork must be received by 5:00 p.m. on January 6 to be considered. Please see below for more details. Thanks to all of the great entries we have received to date. If you have already submitted an entry and would like to submit an additional entry for consideration by January 6, you are invited to do so.

Charleston Harbor Fest is proud to announce the second annual official poster competition. Artists who are 18 years or older may submit original works for the design of the 2009 Charleston Harbor Fest poster. These designs will be judged by a panel representing both the maritime and art communities and should reflect Charleston's rich maritime history while also featuring attributes that reflect Charleston's modern harbor and highlights of the annual event. Artists are encouraged to capture the look and feel of Charleston Harbor Fest, with its blend of international tall ships from around the globe, classic wooden boats, education village, children's activities and celebration of all things related to the sea. The poster must incorporate the text The Tall Ships are Coming!® and the event title, Charleston Harbor Fest 2009.

Additional information and application forms may be downloaded from www.charlestonharborfest.org.

A Different Take on the Upside of the Downturn

Say Hello to the Thrift Zeitgeist

By Ellen Goodman

It read like a manifesto for the new zeitgeist, a signpost for an America decking the halls with boughs of thrift and singing carols to the values of frugality:

“Perhaps it will be different now. Perhaps now is an opportunity to reassess what really matters. After all, if everything you ever bought her disappeared overnight, what would she truly miss?”

How charming. What a tribute to the collapse of consumerism, the one upside to the economic downside. The only problem was that this little gem of thoughtfulness was an ad for diamonds.

...

Now, competitive consumption has been replaced by contagious anxiety. Buying hit the wall with the housing collapse, the stock market plunge, the credit card crunch and the surge in unemployment figures. “Thrift is the new normal.” “Sixty percent off is the new black.” Cutting back is in. Retail therapy is out.

Another Having Less Will Make Us Happier Article

From Alternet.org

Life After the Economic Collapse: How Having Less Will Make Us Happier
Having big cars, fancy TVs and trendy clothes never made us happy. It only drove us into debt -- and increased our dependence on long work hours.

“The pursuit of happiness.” It’s so American that it’s in our Declaration of Independence, where it’s listed alongside life and liberty as an inalienable right.

But how successful have we been in that pursuit? And now that the global finance system is imploding, how likely is it that we’ll be happy in the coming months and years?

America's Largest Third Party Turns 37

The Libertarian Party, America's third-largest political party, is celebrating its 37th birthday.

"Since we began in 1971, we've elected hundreds of Libertarians to public office across the country," says Libertarian Party National Chairman William Redpath. "These Libertarians make a significant impact on their community, and serve as a testament to the values of the Libertarian Party. As more and more Americans look for an alternative to Republicans and Democrats, our numbers continue to grow. Until Republicans and Democrats significantly reduce the size and power of government, the Libertarian Party will be there fighting for smaller government, lower taxes and more individual freedom."

The party was founded Dec. 11, 1971 in Colorado Springs, CO as an alternative to Republicans and Democrats. The Libertarian Party seeks to restore the vision of government held by our Founding Fathers, and divest government of the powers not granted to it by the Constitution.

The platform of the Libertarian Party can be found here.

The Upside of Downsizing

Three ways downsizing has had a positive impact on our lives – and could on yours, as well:

1) When you stop supporting a lifestyle, your life becomes enriched in ways you never imagined. A smaller mortgage and no debt allows more time and energy to pursue the best quality of life possible. Studies have shown that you really can’t buy happiness, i.e. people with a lot of material wealth are not generally happier than the rest of us. So, happiness is not about the things we possess, it’s about the experiences we have, and the people we make connections to. Imagine if you pared down your expenses to the extent that you weren’t stressed about needing to make a certain amount of money. What wonderful experiences and activities could you “spend” that freed-up energy on?

2) When your priorities shift, you’ll meet like-minded people who want to relate to you based on who you are rather than the things you have. We’ve all heard the question workaholics are supposed to ask themselves: On your deathbed, do you really think you’ll regret not spending enough time in the office? The question is a valid one for us all. The things in our lives don’t give back: People and experiences do. What better proof than a recent study which found that happiness is contagious. In addition, as you make connections to others who feel no need to “keep up with the Joneses,” you’ll learn from their actions and priorities, thus reinforcing your new-found freedom.

3) When you get off the never-ending treadmill of working to support possessions, you’ll notice a certain spark back in your life you may not even have realized was missing. Remember when you were in school or just starting out in your job? Life was stimulating – full of challenges, invigorating. Then, as we started accumulating the spoils of working for a living - all the stuff we claimed as rightfully ours - we settled into a routine. Our lives became rote. It’s crucial to keep stretching ourselves by learning new things and having new experiences. Doing so enriches out lives in ways that material possessions never can.

Many people are facing serious financial trouble these days. While there are resources to help consolidate loans, come up with a budget, etc., there is little out there that treats the need to do these things as a path to greater happiness. Rather than looking at downsizing as a sacrifice, try thinking about the freedom and lack of stress you’ll enjoy once your finances are in order. Don’t look at is as giving up the things that you always thought were important, but rather as discovering those things that really are.

By Doreen Orion, a psychiatrist who spent 24/7 in 340 square feet for a year with her psychiatrist husband when they traveled around the U.S. in a converted bus. She is the author of Queen of the Road: The True Tale of 47 States, 22,000 Miles, 200 Shoes, 2 Cats, 1 Poodle, a Husband, and a Bus With a Will of Its Own (Broadway Books). For more, visit www.QueenOfTheRoadTheBook.com.