Back to work

Finally after a futile search of eight months, I was finally confronted with the prospect of two different jobs, and after a long discussion of the pros and cons of each job with my family and myself, I was able to decide on the best of the two and now I am a gainfully employed person and out of the statistics of the unemployed. It was nice getting back employed and a huge burden on my shoulders and my family has been lifted. And now I still hear people complaining about their job and how much they don’t like it or they are stressed to the max. But if you ask me, there is no more stress than being on the unemployment line and not knowing when you are going to get another one especially in this economy.

To people who are employed, they don’t realize how tough of a market it is out there for the unemployed. I have been there and I know the situation and if you have a family then your worrying become manifold. You have to pay your bills and then there is the huge burden of not having your health insurance and then the mortgage. All of this cannot be continued on your unemployment insurance (if you have one). Then sometimes in search of a job, you become frustrated when after sending so many resumes, there is no reply and you sometimes get discouraged. All in all I can say is that it is great to be back to work and if don’t like your work, contact me and I will let you know the other side of it.

Managing Debt while unemployed

There are so many shows to tell you how to manage your debt when you have a job, but I really see any shows which says that if you are unemployed how to deal with your debt. The unemployed are not the U.S. government that they can borrow easily or just print money and then go about their lives. They need real help in dealing with their debt since their debts goes up considerably without a corresponding decrease in their liability. They have to juggle about their daily necessities and try to manage which bills are going to be paid first.

The only thing on the unemployed person’s mind is how to put food on the table and roof over their head while searching for a job. The debt is the last thing on their mind and managing debt the lesser of it too. But all the financial advisers tell you is to pay your higher interest debt first. But my question is with what the person should pay it for with. Whatever money they receive through unemployment benefits goes straight to providing necessities and not reduces debt. It would be interesting if the experts would find a way to help the unemployed manage debt with non traditional methods than with the routine that they keep on saying day in and day out.

When will the stimulus end?

The Fed is at it again, purchasing almost 600 billion dollars in debt to push the long term rates lower. I have no idea what the Fed is thinking but enough of this stimulus. It has been going for too long and the Fed and the government is getting impatient with the slow pace of job creation and economic growth. By throwing more money to the same problem, would they be able to create the conditions for faster growth and job creation. Here I will differ (as did many countries and central banks around the world).

The public has lost appetite regarding more stimuli since the last one did not achieve the desired result of reducing unemployment (although it averted the banking crisis-which is still being debated). I now believe that the Fed should leave the markets alone and let the free market do its work since we are in awash in so much money that we don’t need more help. Let the government devise sound economic policies and let the free market take care of the rest, since the government has already put too much money into the system, the job creation and economic growth will take some time since this economic mess was not created overnight so the solution or the resolution of this mess will not happen for some few years (baring any more unexpected events).

The French Pension protests

Despite all the protests by the French regarding the pension reforms, increasing the retirement age and the years the collection of the benefits, the French government has finally passed the reform package. I believe it is the right thing, although most of the French would feel a sense of loss regarding their entitlement, but judging by the calmness now in the streets of France, People are coming to terms with the new reality. It was just a matter of time, when the reforms would have taken place since most of the developed world is in a big financial crunch; this recession has just created the right atmosphere to implement quickly this reform lest the people start to protest more loudly once the economic situation improves.

But even if the economic situation improves, does any modern industrial nation have the capacity to keep on providing benefits without additional sacrifices from the recipients, I don’t believe that. Unless you keep on borrowing to pay for the additional services (since the current revenue is only useful for day to day governmental operations) and burdening the coming future generations, this model of providing benefits from yesteryears will have to be adjusted to the new economic realities, and the French decision is in the right direction.