One Georgia Bank Approved by the United States Department of Transportation to Assist Minority, Women and Veteran Owned Small Businesses

(BUSINESS WIRE)--One Georgia Bank and the U.S. Department of Transportation announces a partnership whereby One Georgia Bank will be a Participating Lender with DOT’s Office of Small and Disadvantaged Business Utilization (OSDBU). The Short Term Lending Program (STLP) is aimed at helping qualified small and disadvantaged businesses compete for government contracting opportunities.

“One Georgia Bank is already a leader in providing solutions to small business owners with our SBA and USDA guaranteed lending programs”

Under STLP One Georgia Bank will provide a line of credit that will be secured primarily by receivables from transportation contracts. The US DOT will fully guarantee the line. Companies eligible for STLP are certified Disadvantaged Business Entities or businesses certified by the U.S. Small Business Administration Section 8(A) Program, Hubzone, Disabled Veteran or Service Disabled Veteran Owned Business. The maximum loan amount is $750,000.

“This program will go a long way to providing the type of targeted assistance that small businesses competing in the transportation industry need right now,” said OSDBU Director Brandon Neal. “It will really help level the playing field for smaller companies eager to compete.”

“One Georgia Bank is already a leader in providing solutions to small business owners with our SBA and USDA guaranteed lending programs,” stated Willard “Chuck” Lewis, President & CEO of One Georgia Bank. “STLP gives us another tool to bring to market that will help businesses go to the next level.”

STLP eligible activities include maintenance, rehabilitation, improvements, or revitalization of any of the nation’s transportation modes which include public, commercial, Federal, State, or local agency. One Georgia Bank is currently processing its first application under the program.

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New Study Released on the Non-Government Response to the U.S. Economic Crisis

/PRNewswire/ -- A new study shows America's foundations were swift, flexible and targeted in their response to the worst economic crisis since the Great Depression - using on-the-ground knowhow to make a significant impact. The study from The Philanthropic Collaborative (TPC) is the first of its kind to analyze the private-sector response to the crisis and shows that the federal government's response was not the only story.

"The ability of foundations to be swift and flexible in their response allowed them to modify their giving throughout the crisis and ensure the grants went to those most in need," said Doug Holtz-Eakin, author of the study. "During the U.S. economic collapse, we saw grant-making shift, expand and follow the larger unemployment and housing needs that developed and became acute in communities across the country. Even when foundations themselves faced financial stress from the very same crisis, our analysis shows a very clear shift in grant-making patterns to meet emerging economic needs."

The study analyzed a sample of 2,672 grants that totaled $472 million of foundation giving from 2008 to 2009, and early planned giving for 2010. In the area of preventing mortgage delinquencies and foreclosures, private and community foundations saturated their grant-making in states with higher than average delinquency rates. In 2009, for example, 95% of sampled grant-making, or $296 million, went to high-delinquency states. As unemployment became a larger economic problem between 2008 and 2010, the analysis shows foundations devoted more activity to states suffering higher unemployment.

"In the City of Detroit, we have found working with the foundation community has been beneficial for our community and our residents. The foundations allow the city to stretch current budget dollars to plan for the future while continuing to provide services to the residents," said Detroit Mayor Dave Bing. "The study by The Philanthropic Collaborative is representational of the impact foundations have on the City of Detroit," he added.

"Foundation grant-making is fundamental in helping to improve the lives of families during time of economic crisis," said Denver Mayor John Hickenlooper. "Private and community resources, when quickly targeted to local community needs, can play a major role in collective efforts to get local economies back on track. We have seen foundation giving in the Mile High City leverage positive social change with meaningful, measurable results."

"Some in our communities have been devastated by the economic crisis, which has taken a toll on municipal and state resources" said Providence Mayor David Cicilline. "While the responses from the federal and state governments are critically important, we cannot lose sight of the targeted and timely response from community foundations. Without their work, many more individuals and families would fall through the cracks in our system. Foundations are effective because they are part of our community, know the people, can bring aid to where it's needed most and act with speed and precision. They also embody another important attribute - they are able to provide assistance without the red tape and bureaucracy. This entrepreneurial approach is what makes them so effective and welcome in our efforts to ensure people have the means to weather this economic storm."

"I've said many times that government cannot do it all by itself. It must be a citizen movement," Toledo Mayor Michael Bell. "Organizations like to the Toledo Community Foundation and the Stranahan Foundation help provide aid during times of economic distress for people who may otherwise slip through the cracks. We have to be involved as a community and philanthropy plays a vital role in our ability to provide for our citizens."

"This study illustrates the critical role foundations are able to play in assisting Americans and communities in crisis," said John Tyler, Chairman of TPC. "As impressive and encouraging as this is, though, it is only part of the story because previous TPC research has told us that each dollar of grant support from these foundations can generate on average more than eight times that amount of value in direct, economic benefits," he added.

The study analyzed a sample of grants for the years 2008 to 2009, and early planned giving for 2010, obtained from the Foundation Center, which maintains the most comprehensive database of foundations' grant-making activities. The data provides information on the amount, activity and target audience of each grant. Grants averaged $176,608 but ranged from $500 to $5 million.

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Federal Income Taxes On Middle-Income Families at Historically Low Levels

/PRNewswire/ -- The following release by Chuck Marr and Gillian Brunet was released today by the Center on Budget and Policy Priorities:

Middle-income Americans are now paying federal taxes at or near historically low levels, according to the latest available data. That's true whether it comes to their federal income taxes or their total federal taxes.

-- Income taxes: A family of four in the exact middle of the income
spectrum will pay only 4.6 percent of its income in federal income
taxes this year, according to a new analysis by the Urban
Institute-Brookings Institution Tax Policy Center. This is the
second-lowest percentage in the past 50 years.
-- Overall federal taxes: Middle-income households are paying overall
federal taxes -- which include income as well as payroll and excise
taxes -- at or near their lowest levels in decades, according to the
latest data from the Congressional Budget Office (CBO).

Federal Income Taxes Have Declined Significantly in Recent Decades

Federal income taxes on middle-income families have declined significantly in recent decades.

In 2000, the year before the 2001 tax cut that President Bush and Congress enacted, the median-income family of four paid 8.0 percent of its income in individual income taxes, according to Tax Policy Center estimates -- a smaller share than in any year since 1967 (except for 1998 and 1999).(1) The Bush tax cuts further reduced middle-income tax obligations.

This year, the Making Work Pay tax credit, which President Obama and Congress enacted as part of the 2009 American Recovery and Reinvestment Act, is providing a credit of $800 to married joint filers ($400 to single filers). A median-income family with two children thus will receive an $800 tax cut in the return it files this year.

With the new tax cut, the median family's federal income taxes will equal just 4.6 percent of its income in 2009. That is lower than in any year since 1955 (the first year for which these data are available) except for 2008, when another stimulus-related tax cut was in effect.

The 4.6 percent effective tax rate -- the percentage of its income that a family pays in taxes -- is well below the 15 percent marginal tax rate that a family of four in the exact middle of the income spectrum faces. Typically, such a family reduces its effective tax rate by taking the standard deduction (or, in some cases, itemized deductions), personal exemptions, and tax credits such as the child tax credit. The Making Work Pay tax credit further reduces that family's effective tax rate.

Overall Federal Taxes Also at Low Levels

The decline in income taxes on middle-class households in recent years has driven a decline in these households' overall federal taxes.

Households in the middle fifth of the income spectrum paid an average of 14.2 percent of their income in overall federal taxes in 2006, the latest year for which data are available, according to CBO.(2) This is just slightly above this group's effective tax rate of 13.8 percent in 2003, which was the lowest level since at least 1979.

Most Americans pay more in payroll taxes, which support Social Security and Medicare, than they do in income taxes. Thus, the 14.2 percent figure reflects the impact of payroll taxes far more than income taxes.

Due to the impact of the recession and the temporary tax cuts in the Recovery Act, particularly the Making Work Pay tax credit, CBO data for 2009 (when they become available) will likely show that middle-income families faced significantly lower effective overall federal tax rates than in 2006.

This analysis, and other reports that provide a greater understanding of trends in taxation, are posted to: www.cbpp.org.

The Center on Budget and Policy Priorities is a nonprofit, nonpartisan research organization and policy institute that conducts research and analysis on a range of government policies and programs. It is supported primarily by foundation grants.

NOTES:

(1) Tax Policy Center, "Historical Federal Income Tax Rates for a Family of Four," April 12, 2010. The Tax Policy Center's estimates were derived by updating (using Treasury's methodology) a 1998 Treasury Department analysis that examined changes since 1955 in the percentage of income that the median-income family of four pays in federal income taxes.

(2) The CBO study covers the 1979-2006 period and includes federal income, payroll, and excise taxes. Congressional Budget Office, "Historical Effective Federal Tax Rates, 1979-2006," April 2009.

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Consumers Union Urges Fed to Require Banks to Roll Back Recent Unfair Credit Card Interest Rate Hikes

/PRNewswire/ -- After Congress passed legislation last year reining in some of the worst credit card lending practices, many banks responded by hiking interest rates before the new rules went into effect, including on customers with perfect bill paying records. Now Consumers Union, the nonprofit publisher of Consumer Reports, is calling on the Federal Reserve Board to require banks to roll back those unfair interest rate hikes and to put stronger limits on the size of penalty fees and interest charges.

The Fed has already proposed new regulations that would limit penalty fees and require banks to reconsider interest rate hikes imposed during the year leading up to the enactment of key CARD Act protections on February 22, 2010. But the proposed regulations don't go far enough according to Consumers Union and should be strengthened to ensure consumers are more likely to see their old interest rates reinstated and don't face unfair penalty fees and charges in the future.

"Last year's shameful frenzy of credit card interest rate spikes has saddled millions of Americans with high cost debt, including many consumers who always paid their bills on time," said Lauren Bowne, staff attorney for Consumers Union. "The Fed should undo that damage by requiring banks to lower interest rates for customers who were treated unfairly before the new credit card protections went into effect."

The Fed's proposed regulations would require banks to review interest rate hikes made on customers between January 2009 and February 22, 2010 and to reduce those rates "as appropriate." But under the proposal, banks are allowed to keep secret their review process with no oversight by the Fed.

Banks could keep the higher interest rate if the reason for the old rate hike still exists, or if the bank decides to come up with a new reason for the higher rate. Banks would not be required to start this "look back" process until six months after the regulations go into effect - in other words, starting in late February 2011.

Consumers Union urged the Fed today to strengthen the rate review proposal by:

-- Requiring banks to reinstate the old interest rate if the reason for
the rate hike would not have been allowed under the new protections
afforded by the CARD Act.
-- Requiring banks to disclose the methodology they use to review rates
and to report to the Fed twice each year the number of rate increases
reviewed and the number of rate reductions that result.
-- Requiring banks to begin reviewing rate increases on August 22, 2010,
when the rate review provision goes into effect.


Thousands of consumers have contacted Consumers Union over the past year to complain that their credit card interest rates were raised unfairly. Many consumers reported that their banks acknowledged that interest rates were raised because of the economy or a change in market conditions and not because of anything wrong done by the consumer. Other consumers reported that their interest rates doubled or tripled after they were a day or two late making their payment or for other minor mistakes. Before the new credit card protections started on February 22, banks were allowed to raise interest rates on existing balances at any time for any reason.

Starting on February 22, banks were prohibited from raising interest rates on a credit card customer's existing balance unless the customer has a variable rate card, a promotional rate has expired, or if the customer is more than 60 days late making the minimum payment.

The Fed also has proposed regulations required by Congress under the CARD Act that are meant to ensure penalty fees and charges are "reasonable and proportional" to the customer's violation of the credit card contract. However, the Fed's proposed rule only applies to penalty fees such as those imposed for going over the limit or being late with a payment and not penalty interest rates.

Under the Fed's proposal, penalty fees would be allowed only if a bank can show the fee is a reasonable proportion of the total cost to the bank caused by the customer's violation of the credit card agreement or if the bank proves that the fee amount is necessary to deter the same kind of violations in the future. The rule also proposes a complicated "safe harbor" provision which allows a bank to pick a permissible fee amount without doing the cost or deterrence analysis.

Consumers Union urged the Fed to broaden its proposed regulation so it extends to the size of penalty interest rate hikes in addition to fees and to limit those rate increases to no more than seven percentage points above the non-penalty interest rate. Consumers Union called on the Fed to simplify and strengthen the "safe harbor" provision for penalty fees by setting it at five percent of the violation or no more than $10.

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LPS' Mortgage Monitor Report Shows Total Delinquent Loans 21.3 Percent Higher Than Last Year; Foreclosure Rates At Record High

/PRNewswire/l/ -- The latest Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE:LPS) , a leading provider of mortgage performance data and analytics, shows that the total number of delinquent loans was 21.3 percent higher than the same period last year. Although the data showed a small 1.45 percent seasonal decline in delinquencies from January 2010 to February 2010 month-end, the national delinquency rate still stood at 10.2 percent. The report is based on data as of February 2010 month-end.

The nation's foreclosure inventories reached record highs. February's foreclosure rate of 3.31 percent represented a 51.1 percent year-over-year increase. The percentage of new problem loans also remains at a five-year high. The total number of non-current first-lien mortgages and REO properties is now more than 7.9 million loans. Furthermore, the percentage of new problem loans is also at its highest level in five years. More than 1.1 million loans that were current at the beginning of January 2010 were already at least 30 days delinquent or in foreclosure by February 2010 month-end.

As a result of the federal government's Home Affordable Modification Program (HAMP), delinquent loans that were modified and that remained current through HAMP's three-month trial period - called "cures-to-current" - have increased. Advanced delinquency rolls, however, remain elevated from a historical perspective.

Other key results from LPS' latest Mortgage Monitor report include:

Total U.S. loan delinquency rate: 10.2 percent
Total U.S. foreclosure inventory
rate: 3.3 percent
Total U.S. non-current* loan rate: 13.5 percent
Florida, Nevada, Arizona,
Mississippi, California, New
Jersey, Georgia, Illinois, Ohio and
States with most non-current* loans: Indiana
North Dakota, South Dakota, Alaska,
Wyoming, Nebraska, Montana,
States with fewest non-current* Vermont, Colorado, Washington and
loans: Minnesota

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Note: Totals based on LPS Applied Analytics' loan-level database of mortgage assets.

LPS manages the nation's leading repository of loan-level residential mortgage data and performance information from approximately 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report.

To review the full report, listen to a presentation of the report or access an executive summary, visit http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx.

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Sensible Tax Change Would Bring in $450 Million, Avoid Additional Service Cuts

The General Assembly is poised to slash the budget more in light of another month of declining revenues caused by the Great Recession and Georgia's structural deficit.

"This problem is too large to solve with budget cuts alone," said Sarah Beth Gehl, deputy director of the Georgia Budget & Policy Institute. "We should seek a balance of cuts and new revenues through sensible tax changes such as repealing the deduction of state income tax."

One concrete way to bring in $450 million* is to repeal the bizarre state tax deduction, which almost all states do not allow. The deduction not only costs nearly a half-billion dollars, but it unfairly lowers the effective tax rate for taxpayers who itemize.

"This tax change would not affect the vast majority of taxpayers with incomes less than about $50,000, since they do not itemize," said Gehl, "but for those who do, about 15 percent of filers, the average tax increase would be $85. (The total amount will still be deductible on the federal income tax.)

"Another $1 billion cut to state services will have an immediate negative impact on Georgia's economy, as
well as devastating effects on the education and healthcare infrastructure," said Executive Director, Alan Essig. "This sensible tax change should be part of a balanced solution going forward, along with the proposed increase in the cigarette tax."

* $450 million is an estimate calculated by the Institute on Taxation and Economic Policy, March 2010.

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To Buy or Not to Buy: Taking Advantage of the Homebuyer's Tax Credit

/PRNewswire/ -- Despite the extension of the 2009 homebuyer's tax credit to April 30, 2010, and low home prices, potential buyers need to carefully examine their finances before taking the plunge.

"Many people are able to benefit from this tax credit, but that does not always mean buying is a good option for them," said Lindsay Alston, a credit counsellor with CESI Debt Solutions. "You have to look closely at your income to see if the numbers work."

A key rule for homebuyers to remember is that your mortgage, including the principal, interest, taxes, association fees and insurance should never exceed 30 percent of your gross income. A debt-to-income ratio higher than 30 percent indicates that at the end of the year, the amount you are spending on homeownership might exceed what you can afford - and ending up in the red will offset the benefit of owning a home.

"It is the buyer's responsibility to understand the full cost of owning a home - which includes maintenance," said Alston. "It means being responsible for replacing the hot water tank when it dies, or fixing the roof in the event of a fallen tree."

A tax advisor can help house hunters understand the benefits of the tax credit. The credit, which offers 10 percent back on a home's purchase price up to $8,000, will be added to a current tax refund or subtracted from money owed back in taxes. For example, if you already owe $500 in 2009 federal taxes and qualify for a $2,000 homebuyer's credit, you will only see an additional $1,500.

"The tax credit is a great incentive for people who are financially in good shape and planning to buy a new home anyway," said Alston. "But if you don't think you can make the numbers work without it, you should probably wait and continue to save, even if it means missing out on the tax credit."

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Dow Jones Economic Sentiment Indicator Up Only Slightly to 38.7; Suggests Recovery Could Be Losing Momentum

/PRNewswire/ -- The media's coverage of mixed economic news led to a marginal rise in the Dow Jones Economic Sentiment Indicator (ESI) in December. The ESI rose to 38.7, up only minimally from 38.3 in November. This slight rise is the ESI's third weakest performance in a year and much less convincing than increases in October and November.

While the ESI ends the year significantly higher than the 22.4 level it registered in January at the start of the year, December's weaker performance means the indicator failed to break back above the level it held before the collapse of Lehman Brothers in September 2008.

The Dow Jones Economic Sentiment Indicator aims to predict the health of the U.S. economy by analyzing the broad coverage of 15 major daily newspapers in the U.S. During December, media coverage that included references to better-than-feared holiday retail sales was outweighed by articles referencing mixed or negative economic news including continuing double-digit unemployment and slower economic growth.

"The ESI's significantly slower rate of improvement in December suggests the U.S.'s economic rebound could be starting to level off and that non-farm payrolls neither advanced nor declined by much during the month," Dow Jones Newswires 'Money Talks' columnist Alen Mattich said.

The ESI represents one of the most comprehensive and far-reaching examinations of media coverage as an economic indicator. The ESI's back-testing to 1990 shows that the ESI clearly highlighted the risk that the U.S. economy was sliding into recession in 2001 and 2008 and suggests the indicator can help predict economic turning points as much as seven months in advance of other indicators.

Unlike some other indicators where 50 is a clear break-point between recession and recovery, the ESI needs to be read with reference to longer trends. Based on the ESI's performance since 1990, previous recoveries have been marked by substantial month-to-month gains, with a jump of three points seeming to be a sign of significant improvement. A drop below 50 marks the point at which there is a clear risk of a slowdown.

The Dow Jones Economic Sentiment Indicator is calculated using a proprietary algorithm through Dow Jones Insight, a media tracking and analysis tool. More information about the Economic Sentiment Indicator and its development is available at http://dowjones.com/esi .

Dow Jones Insight uses innovative text mining and analytic technologies to help organizations keep informed about relevant issues, news, conversations and trends emerging in mainstream, Web and social media. Dow Jones Insight's global content collection includes more than 25,000 news and information sources as well as blogs, message boards, and posts from YouTube and Twitter.

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Five Gifts to Give Yourself in the New Year

/PRNewswire/ -- The holidays are a wonderful time full of having fun with friends and family and giving gifts to the people we care about. For many consumers, however, the joy of the season will soon be replaced by the stress of paying holiday debt.

"It is easy to get caught up in the excitement of giving during the holidays," said Mechel Glass, Director of Education for Consumer Credit Counseling Service of Greater Atlanta (CCCS). "But many overdo a good thing and then struggle to make even minimum payments on their credit cards."

CCCS of Greater Atlanta advises consumers to top their list of New Year's resolutions with a commitment to improve their financial outlook. To help consumers tackle what can be a stressful time, CCCS suggests following the following tips:

1. Know how much you owe. A common mistake is not keeping track of debt.
The thinking is that as long as you can keep up with the payments,
everything is fine. However, if circumstances change due to a layoff
or other unexpected event, you could find yourself unable to make
payments and in immediate financial stress. The only way to understand
what you are facing is to have a realistic picture of what you owe.
Gather all your credit card statements and other bills and add up the
total.
2. Create a spending plan. The easiest way to take control of your money
is to set out a plan for how you will spend it. This is not glamorous
and can be something of a task, but it gives you the power to decide
where your money goes. The plan should be flexible and include monthly
expenses such as mortgage or rent, utilities, food, transportation,
entertainment, clothing, etc. Make sure your expenses are not more than
your income. If they are, go back to the plan and make adjustments.
3. Pay off credit card debt. The average household has more than to $8,300
in credit card debt (Nilson Report, April 2009) and the interest paid
on those balances can be as high as $1,500 a year. Just think of what
you could do with an extra $125 a month in your budget! Stop charging
additional purchases today and make a commitment to yourself that once
you have paid off your debt, you will not charge any purchases unless
you have a plan in place to pay off the balance in 90 days or less.
Sacrifices now will mean less stress and a better financial future.
4. Build a savings cushion. Once you have paid off your credit card
balances, you should begin to build a savings cushion for emergency or
unexpected expenses or if you lose your job. Your goal is three to six
months of living expenses put aside in a savings account. With this
cushion in place, when the refrigerator stops working, your car's
transmission gives out or your mother-in-law moves in, you will not
have to put those unexpected expenses on a credit card.
5. Develop a strategy for your financial future. Set aside time at least
twice a month to manage your finances including paying bills, balancing
your checking account and analyzing your expenses. Begin thinking
about, and planning for retirement--consider when you would prefer to
retire, how much money you will need to live the lifestyle of your
choice and what you need to do now to get there. Establish a retirement
fund and contribute to it on a regular basis.


Not sure where to start? If you are feeling overwhelmed, there is help. CCCS of Greater Atlanta provides confidential budget counseling, money management education, debt management programs and other services to help consumers. Contact CCCS at 800-251-CCCS or online at www.cccsinc.org.

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INPUT Issues New Report Card on Economic Stimulus Package

(BUSINESS WIRE)--INPUT, the leading authority on government business, today announced an updated Report Card grading the Obama Administration on its execution of stimulus package objectives for the American Recovery and Reinvestment Act (ARRA) of 2009. The new grades were issued based on the release of the much anticipated recipient reports required by the ARRA. They cover four key recovery areas: Speed of Spending, Job Creation, Transparency & Reporting, and Contracting Effectiveness.

Since its first Report Card in June, which graded the Obama Administration on its execution of stimulus objectives during the first 100 days of the ARRA, INPUT has made noteworthy updates to its evaluation. Contracting Effectiveness received the most improved grade, moving from a C- to a B based on federal agencies’ significant improvement in the use of fixed price contracts and in the percentage of contract awards to small businesses. Transparency and Reporting also rose from a D to a C-, still leaving significant room for improvement to address late reporting and a lack of transparency surrounding grants applications for many programs. Speed of Spending continued to receive INPUT’s highest grade, earning a B+ based on the federal government’s adeptness in dispensing a tremendous amount of money very quickly. Meanwhile, Job Creation again received an Incomplete.

“The federal government has continued to dispense stimulus money at a record pace,” said Timothy Dowd, CEO of INPUT. “However, questions still remain about how that spending is translating into new jobs. While INPUT’s latest report card points to some noteworthy areas of improvement in the Administration’s execution on the stimulus, there is still much work to be done to address shortcomings across all key recovery areas.”

Speed of Spending: B+

In Vice President Biden’s first Quarterly Report to the President on Implementing the American Recovery and Reinvestment Act of 2009, he stated that the President had set a goal of spending $350 billion by Sept. 30, 2010. In order to achieve that goal, the federal government needs to spend $4.16 billion per week. The Administration’s speed of spending has remained nearly the same as INPUT’s last scorecard, averaging $3.6 billion per week. At its current pace, the administration will spend $305.2 billion by September 30 of next year, achieving 87% of its previously stated goal.

Job Creation: Incomplete

President Obama promised 3.5 million to 4.0 million jobs would be created or saved with the passage of the Recovery Act. While recently released recipient reports put that number at 640,329 eight months after the ARRA’s enactment, the unemployment rate has risen from 8.9 percent to 9.8 percent during the same period. Additionally, 2.6 million people have lost their jobs since March and 512,000 new unemployment claims were filed during the week ending October 31, 2009.

Despite the recent release of initial recipient reporting, INPUT continues to believe that accurate reporting of job creation is ultimately unknowable because of the number of recipients reporting, the complexity of the reports, the definition of a saved job, and recipients were allowed to use a calculation when they were unable to provide actual data. As a result, INPUT once again gave the Administration an Incomplete for Job Creation.

Meanwhile, recipient reporting has shown that the cost of each job created varies wildly from state to state. For example, the cost per job created or saved in Pennsylvania was $488,930, compared to $41,475 in Montana.

Perhaps the most troubling issue is the concentration of created or preserved jobs in the public sector. Based on its analysis of recipient reports, INPUT discovered that more than half of the total number of jobs created are in the areas of education, criminal justice, corrections and public administration. There are serious concerns about what happens to these jobs when stimulus money runs out and states are still faced with nearly $200 billion in budget gaps.

Transparency and Reporting: C-

INPUT has raised the Administration’s grade for reporting and transparency from a D to a C-. Each new report has been late, based on the Office of Management and Budget’s (OMB) initial guidance, and the data quality of each new report has been poor upon release. However, over time the quality and completeness of previous reports has improved and INPUT expects this trend will continue. A major area of disappointment continues to be the lack of transparency surrounding applications for many of the grant programs funded by the Recovery Act.

“INPUT encourages the Administration to reconsider its approach with respect to publication of grant applications,” said Dowd. “By allowing citizens access to grant applications before the awards are made and the opportunity to comment on those applications, federal agencies could truly be taking a proactive approach to combating fraud, waste and abuse.”

Effectiveness of Contracting: B

According to INPUT’s latest analysis, federal contracting officials have substantially improved their performance in the use of fixed price contracts, small business involvement, and the establishment of new contracts. As a result, INPUT has raised the Administration’s grade for Effectiveness of Contracting from a C- to a B.

To date, the federal government has awarded 48 percent of the reported contract obligations using fixed price contracts, a 30 percent increase over INPUT’s initial report card. In addition, 86 percent of the reported contract obligations are being channeled through competitive contracts. Almost 70 percent of the reported obligations have been issued against contracts that were already in place prior to passage of ARRA. This is a significant improvement from the 94 percent use of existing contracts in June.

In addition, nearly 27 percent of the contracting dollars awarded have been to small businesses, 4 percent above the government-wide goal of 23 percent and a substantial increase from the 11 percent reported in June. With the small businesses creating 60 percent of the net new jobs since the mid 1990s, the Administration’s pattern of spending in this sector bodes well for job growth.

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World Unlikely to Scrap Current Reserve System Despite Weak Dollar, Says CornerCap Investment Counsel

/PRNewswire/ -- Despite the recent credit crisis and headlines about the possible demise of the dollar as the world's dominant currency, it is unlikely that the world will scrap the current reserve system anytime soon, CornerCap Investment Counsel concluded in a recent report (go to http://www.cornercap.com/library/Newsletters/n2009fall.pdf for the complete report).

While the dollar will inevitably surrender some of its dominance, too many major players like China and OPEC have a vested interest in a financially strong U.S. to undermine the dollar's position too strongly, according to Cannon Carr, chief investment officer.

Instead, Carr anticipates an orderly transition to a post-dollar world, one that will take a decade or more, and probably with U.S. leadership.

"The dollar's position as the world's dominant currency has been key to our standard of living since World War II, and its standing plays a vital role in the U.S. recovery," Carr said. "Moving radically away from the U.S. dollar as the dominant currency would limit our return to economic growth, at a time when other countries need a healthy US to boost their own economies," he added.

However, high U.S. debt levels and deficits, when combined with a weak growth outlook, do increase the risk to a currency system tied to the dollar. With a sustained weak dollar, non-U.S. countries can find their exports expensive and their own economies influenced by poor policy choices by the US. So while other nations can tolerate a weak dollar, an irresponsibly sustained weak dollar jeopardizes their financial stability and could force them to seek more radical change to the reserve system.

What's more, without convincing economic growth (say 4% annually); the U.S. will have to balance national debt levels, deficits and government spending to manage the dollar's position. Special attention must be given to government spending (for growth, social programs, entitlements, or war), which is typically financed through taxation, borrowing, or inflation. Pushing too far in those areas would have serious ramifications for the dollar.

Carr believes the dollar's recent descent may reflect investors' increased risk tolerance rather than collapsing faith in the U.S. system. When fear reached its peak in October 2008, investors sought safety in U.S. Treasury instruments and the U.S. dollar. If fear returns, those two investment vehicles could be once again viewed as safe havens.

What does the dollar's outlook mean for investors? Pursuing radical strategies today are likely to yield sub-par investment results over time.

"We continue to believe deflationary forces may prevail for the immediate future but inflation has a higher probability in perhaps four to five years," Carr said. Predicting when that inevitable transition will occur is impossible, and CornerCap recommends diversified investment portfolios that balance the risk/reward across many uncertainties, including deflation, inflation, or a normal recovery.

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Banks’ Actions on Credit Cards Undermine Consumer Protections

Low- and middle-income households with credit card debt owe, on average, $9,827 on their cards. If you make the minimum monthly payment -- under many agreements 2 percent of the balance or $10 -- at 10 percent interest, it will take you more than 26 years to pay off the balance, including $6,812 in interest payments.

But what if the rate was raised even higher, or if your rate was tacked to the prime rate (currently 3.25 percent). It could take more than a lifetime to pay off that kind of debt.

In May, Congress adopted the Credit CARD Act to protect consumers from capricious rate hikes. Under the act, banks must give consumers at least 45 days notice before raising their rates. And beginning in February 2010, banks cannot raise rates on existing balances unless a consumer is in default.

Just last week, however, House Financial Services Committee chair Barney Frank accused banks of abusing the “grace period” they were given before all the law’s provisions take effect. Unfortunately for consumers, he’s right.

For example, Wells Fargo announced last week it was raising rates on existing accounts by up to 3 percentage points. Other card issuers, including such large banks as Bank of America and JPMorgan Chase, also have been accused of raising rates on balances prior to the law’s effective date.

Additionally, in June, Bank of America and Chase switched many cardholders from fixed- to variable-rate cards. Variable-rate cardholders are not protected from unexpected rate changes under the new law, because rate changes are permitted as the prime rate moves up and down.

Those most likely to be harmed by higher borrowing costs are consumers who are relying on their credit cards to carry them through the economic downturn. According to Démos, a non-partisan research and advocacy organization, most low- and middle-income households with high debt-stress levels -- the ratio of a family’s credit card debt to their annual income -- use their credit cards to pay for unavoidable expenses, such as medical expenses or to cover household essentials after a job loss, not for discretionary items.

Higher rates lead to longer payoff periods and thousands of extra dollars in interest payments. Let’s take the case of the average low- and middle-income households with $9,827 in credit card debt. If they continue to make the minimum monthly payment on that amount but at 13 percent interest plus prime, rather than our previous example of 10 percent interest, it must pay $19,897 in interest payments over the more than 45 years it will take to clear the balance. And because the prime rate is at historically low levels, this example likely presents a best-case scenario.

Many cardholders have responded to the downturn and the higher borrowing costs by reducing their debt. In July, revolving credit, which is largely credit-card borrowing, declined. For many, however, reducing debt during these tough times is not an option.

Moreover, changes in the availability of credit are also making it more difficult for cardholders to protect themselves from the banks’ actions. In the past, cardholders could demand better terms by threatening to take their business elsewhere. Today, this option is limited, because many banks have tightened credit-card approval standards.

Banks may be putting themselves at risk by their actions as well. If consumers are subjected to usurious rates as the prime rate rises, more will inevitably default on their debt. Banks will find it difficult to make up for these losses by further raising rates on consumers who are already stretched to their limits.

Bank of America vowed last week to stop raising interest rates before the February limits take effect, making the announcement as Rep. Franks’ committee met to consider moving up the effectiveness date of the new legislation. But such a promise offers too little, too late for many consumers who have already been harmed.

It is time for banks to rethink their recent moves and for Congress to do more to protect consumers.

By Jamie Lau

Jamie Lau is a research fellow with the Community Enterprise Clinic at Duke Law School.

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'The State of College Savings' Survey Finds Parent Confidence Crashing As They Rely on Loans, Shift Debt Burden to Their Children

'The State of College Savings' Survey Finds Parent Confidence Crashing As They Rely on Loans, Shift Debt Burden to Their Children - 529 Investors Still Most Successful Savers

/PRNewswire/ -- Parents' confidence in their ability to save for college plummeted over the last year, as they socked away less and relied more on the prospect of student loans and grants to fund their children's college education, according to the 2009 "The State of College Savings" survey of nearly 800 parents across regions and income levels conducted by the College Savings Foundation (CSF).

Forty-four percent of parents are "not very confident" that they will reach their college savings goals, up from 31 percent in 2008; while the number of parents who are "very confident" has plunged to 12 percent from 20 percent last year.

Reduced savings may be contributing to this malaise: one-third of parents said that they are saving less for college this year than last, with 43 percent of those prioritizing current living expenses and 29 percent suffering a cut in income. Of the total parents surveyed, 41 percent have saved nothing at all, and 28 percent have saved less than $5,000 per child.

The number of parents expecting student loans to pay for college soared to 47 percent from 37 percent one year ago. Those expecting financial aid spiked up to 73 percent from 62 percent last year. And, more parents are shifting the debt burden to their children: 68 percent versus 63 percent last year, with 46 percent expecting their kids to be responsible for up to one-third of their college debt - up from 34 percent in 2008.

Despite this behavior, parents haven't adjusted or changed their hopes and aspirations: 76 percent of parents don't expect to have to narrow their children's college choices; and 76 percent would be very disappointed if their child could not afford to go to college (at least 8 on a scale of 1-10).

Pointing to a clear strategy for bridging this gap between intention and action was the finding that parents owning 529 college savings plans were the most successful group in saving for college: 61 percent of parents with 529s have saved more than $5,000 per child, versus 22 percent of those without one.

"This survey is a call to action for parents to save early and often - even if they can only start with small amounts," said Kevin McMullen, Chairman of the College Savings Foundation, a leading nonprofit encouraging American families to save for their children's college education. "The economic reality is that parents cannot count on college loans and grants being available or affordable when their children reach college age. Any shortfall in college funding will cascade as debt burden onto their children's futures."

Parents realize that their dependence on debt will have a long term impact: 65 percent expect that it will take at least five years for them or their children to pay it off after graduation.

Those who can't get loans anticipate getting Federal or State grants: 28 percent of parents are relying on these as their primary source of college funds, compared to 20 percent last year. Seventeen percent expect financial aid to cover over two-thirds of all college costs - up from only ten percent last year. Thirty-four percent expect it to cover up to one third of college costs.

"Financial aid covers only a portion of college costs and families need to look for ways to close that gap," McMullen said. According to the College Board, in 2007-2008 undergraduate students received on average $8,896 in financial aid, including $4,656 in grant aid and $3,650 in federal loans. This represents a fraction of the average $14,333 cost of today's four-year public college, or $34,132 for a private college or university.

As in last year's survey, 22 percent of parents expect help from grandparents; and 72 percent expect no help in paying for college at all. Twenty-seven percent would ask friends and family to "trade toys for tuition," or contribute to college rather than in material gifts.

Three-quarters (74 percent) of parents do not even know how much they need to save, up from 70 percent last year.

"In the face of an economic climate that is clearly putting families under pressure, we as an industry including financial advisors and policy makers should redouble our efforts to raise awareness on how to save to stave off debt," McMullen said.

The survey showed that many parents are saving successfully through vehicles like 529 college savings plans and strategies like automatic savings programs, enabling systematic and regular contributions of funds for college savings.

Parents owning 529s were far more successful in saving than those using other investments: 34% of parents who have saved more than $5,000 per child invest in 529s as their primary savings vehicle, more than double that of the next most popular ones: 14 percent of parents who have saved more than $5,000 per child are primarily in mutual funds, and 14 percent are in cash.

The percentage of parents in 529 plans held steady from the 2008 report. Nearly one in four, or 23 percent, is invested in a 529 college savings plan, and one in five (19 percent) says that 529s are the number one college savings vehicle, exceeded only by cash at 25 percent. At the same time, in a question that permitted more than one answer, the 2009 survey found that those parents who are saving are also squirreling money away in general (57 percent) and emergency (31 percent) funds.

"While it is understandable that parents are keeping cash at hand in these uncertain economic times, families are continuing to recognize the benefits of 529 college savings plans in reducing taxes and reaching their college savings goals," said McMullen. "Parents have the option to keep 529 funds in cash as well."

The 2009 State of College Savings survey also offered these glimmers of good news:

-- Although 46 percent of parents said that they would like to save more
in general but can't because of this year's economic reality, one in
four parents - 24 percent - said that they were actually saving more
than before.
-- Parents seemed to understand that a little is better than nothing:
those who tried to save at least something edged up from last year:
28 percent have saved less than $5,000 per child - but that is up from
22 percent in 2008. Around 30 percent of those are invested in a 529.
-- Parenthood prompts saving and gives parents time to build savings
momentum: 25 percent of parents started saving when their child was
born, and 20 percent when the child was 1-5 years old. Those parents
with children 11-13 years old, and those with children 14-18 years
old, had saved more than those in other age groups. Approximately 42
percent of each of those groups has saved more than $5,000 per child,
versus 26 percent of those with children in younger and older
categories.
-- While 20% of parents used an automatic savings strategy, those that
did were successful savers. 63% of them have saved more than $5,000
per child. 35% have been able to save between $100-$300 per month.
57% of those utilizing an automatic savings strategy own a 529.

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Financial Peace University Classes Offered

Fayetteville First United Methodist Church is offering Financial Peace University Classes for the local community starting in September. Financial Peace University is a life-changing program that teaches one how to make the right decisions with their money. You'll be empowered with the practical skills and confidence needed to achieve your financial goals and experience true financial peace!

This is a 13 week course, commencing on Sunday, 13 September. Classes will meet from 4:30 PM to 6:30 PM, at Fayetteville First UMC at 175 Lanier Avenue in Fayetteville. The normal cost for the class is $150. The Church group rate is $110 for the 13 week course.

To sign up or obtain more information, please contact:

Laura Cox
Director of Adult Discipleship
770-461-4313, ext. 16
Fayetteville First United Methodist Church
lcox@fayettevillefirst.com
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One in Seven Seniors Faces Social Security Check Cuts in 2010

/PRNewswire / -- Close to seven million seniors -- one in every seven -- will receive a smaller Social Security check next year, according to a new analysis by The Senior Citizens League (TSCL). Millions of other seniors who do not have their Medicare premiums automatically deducted from their checks will also have fewer Social Security dollars leftover next year.

These seniors will be affected because their Social Security Cost of Living Adjustment (COLA) is forecast to be zero next year, while their Medicare Part B (doctors' visits, tests, and outpatient hospital care), Part C (Medicare Advantage) and/or Part D (prescription drugs) premiums are forecast to rise.

Affected seniors generally fall into one of two groups, if not both:

1. MEDICARE PART B: HOLD HARMLESS PROVISION: Approximately three million
seniors will endure cuts because they are not protected by a "hold
harmless" provision that prevents the vast majority of beneficiaries
from receiving smaller Social Security checks in years when Medicare
Part B premiums exceed the COLA. Two groups of seniors will not receive
hold harmless protection in 2010:
a. MEANS TESTING: 2,121,500 beneficiaries who pay higher premiums due
to Part B "means testing." Individuals with adjusted gross incomes
(AGI) above $85,000 and couples over $170,000 are affected.
b. NEW ENROLLEES: 848,000 new enrollees will pay the 2010 premium
rate, forecast by Medicare's Trustees to be $104.20 per month,
instead of the current rate of $96.40 per month that tens of
millions of seniors will continue to pay next year due to hold
harmless.

2. MEDICARE PARTS C & D: More than 3.8 million other seniors will see
smaller Social Security checks next year due solely to likely increases
in Medicare Parts C and D, for which no hold harmless provision exists.
Note: Millions of other seniors will also be affected, as our estimate
includes just those who will have automatic reductions to their Social
Security checks. Additional millions of seniors who pay plans directly
will also have fewer Social Security dollars leftover next year.


"It's bad enough that seniors will have to endure rising costs next year without an increase in their Social Security checks -- but to actually cut checks for millions of seniors in this economy borders on cruelty," said Daniel O'Connell, TSCL chairman. "Our members are already unable to afford their prescriptions, rent, and air conditioning. We simply can't survive year-after-year of cuts."

A majority of those aged 65 and over who receive a Social Security check depend on it for at least 50 percent of their total income, and one in three beneficiaries rely on it for 90 percent or more of their total income.

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Isakson, Conrad Praise Senate Passage of Legislation to Investigate Economic Crisis

Amendment Creates Bipartisan, Independent Commission

U.S. Senators Johnny Isakson, R-Ga., and Kent Conrad, D-N.D., today praised Senate passage of their amendment to fraud legislation being considered by the Senate that would create a Financial Markets Commission charged with fully investigating the causes of the current financial and economic crisis in the United States. The amendment passed by a vote of 92 to 4.

“When Enron and WorldCom failed at the start of this decade, Congress rushed to legislate and regulate without all the facts. We need to make sure we don’t repeat that reaction as we seek to recover from today’s financial crisis,” Isakson said. “The only way to get an objective evaluation of where mistakes were made is to create an independent commission of experts to ask what went right, what went wrong and what could we have done to prevent this. We need a forensic audit of the laws of the United States as it relates to the financial markets and our economy.”

“The American people – many of whom saw their retirement accounts take significant losses in recent months - demand and deserve to know what caused our financial system to spiral downward so far so fast. We must hold those responsible for this calamity to account,” Senator Conrad said. “The commission the Senate voted to create today will investigate wrongdoing and help establish rules to help shore up our national economy and ensure this never happens again.”

The 10-member, bipartisan Financial Markets Commission will be modeled after the 9-11 Commission, which thoroughly and independently investigated the failures leading up to the September 11, 2001, terrorist attacks and made sound recommendations on where we needed to improve to prevent another attack in the future.

Likewise, the Financial Markets Commission will have 18 months to investigate all the circumstances that led to this financial crisis. The panel will have the authority to refer to the U.S. Attorney General and state attorneys general any evidence that institutions or individuals may have violated existing laws. At the end of its investigation, the Commission will report to the Congress its recommendations for statutory or regulatory changes necessary to protect our country from a repeat of this financial collapse.

This bipartisan Commission will include two appointees each by the Speaker of the House and the Senate Democratic Leader as well as one appointee each from the House Republican Leader, the Senate Republican Leader, the Chairman of the Senate Banking, Housing and Urban Affairs Committee, the Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, the Chairman of the House Financial Services Committee and the Ranking Member of the House Financial Services Committee.

The Speaker and Senate Democratic Leader will choose the commission’s chair. The Senate and House Republican Leaders will select the vice-chair. Members of Congress as well as federal and state employees are prohibited from serving on the Commission.

Isakson and Conrad originally introduced legislation to examine the causes of the current economic crisis in January 2009. Senator Chris Dodd, D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban Affairs, is a co-sponsor of the amendment as are Senators Saxby Chambliss, R-Ga., Olympia Snowe, R-Maine, and Sheldon Whitehouse, D-R.I.
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Just in Time for April 15… the Pros and Cons of Tax Simplification

Never let it be said that Clayton State University’s New York Times Talks aren’t, well… timely.

The next New York Times Talk, scheduled for Tuesday, Apr. 14, will feature Dr. Nikki Finlay, associate professor of Economics in the Clayton State School of Business, who will facilitate a discussion on the “Pros and Cons of Tax Simplification” from 11:15 a.m. to 12:30 p.m. in room T152 of the University’s new School of Business building. All of the New York Times Talks are free and open to the public.

“This is a timely talk — one day before taxes are due,” notes Dr. Joe Corrado, campus coordinator of the American Democracy Project.

And, just to provide a timely reminder that there is such a thing as a free lunch, a free lunch is provided courtesy of the New York Times.
For more information, contact Corrado at joecorrado@clayton.edu or call (678) 466-4803.

A unit of the University System of Georgia, Clayton State University is an outstanding, comprehensive metropolitan university located 15 miles southeast of downtown Atlanta.
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NIA Says Americans Should Prepare for Hyperinflation

/PRNewswire/ -- The National Inflation Association today released the following statement to its http://inflation.us/ members:

"The Federal Reserve's announcement on Wednesday to expand its balance sheet by $1.15 trillion puts our country on a direct path towards hyperinflation.

By spending $300 billion on long-term U.S. Treasuries, $750 billion on worthless mortgage-backed securities, and $100 billion on other federal agency debt; the Federal Reserve will be doing nothing more than printing $1.15 trillion out of thin air, which means Americans are guaranteed to see a sharp decline in the purchasing power of their U.S. Dollars.

Wednesday's news brings total funds allocated by the Federal Reserve and United States Treasury during the financial crisis up to $11.4 trillion and although only $2.8 trillion has so far been spent, we believe the full $11.4 trillion will inevitably be spent.

If the Federal Reserve simply allowed AIG to fail, the free-market would've efficiently reorganized the company in bankruptcy. The $165 million in employee bonus contracts, that Congress has been so eager to express outrage about, would've been wiped out completely. The failure of AIG would not have brought down the U.S. financial system. However, bailing out every financial firm on Wall Street will.

Federal Reserve Chairman Ben Bernanke commented this past weekend on 60 Minutes that our country's biggest risk is we don't have the political will and commitment to solve our current financial problems. We respectfully disagree with Chairman Bernanke and believe our country's biggest risk is hyperinflation, that will come as a result of the Federal Reserve's actions.

Up until now, the United States has been successful at keeping inflation somewhat under control by borrowing the money for much of its spending from China. However, China's Premier of the State Council Wen Jiabao said last week that he is worried about the safety of the U.S. Treasuries they are holding. By China publicly acknowledging their fears, not only is it possible China will stop buying U.S. Treasuries, but they could take advantage of the Federal Reserve buying U.S. Treasuries and use it as an opportunity to sell.

The U.S. Consumer Price Index rose in February by 0.4 percent, which equals an annualized inflation rate of 4.8 percent. We believe inflation would be much higher if it wasn't for all of the temporary factors driving consumer prices down such as the forced liquidations of hedge funds, de-leveraging of banks, going out of business sales of retail stores, etc.

These temporary factors will soon be gone. They are likely to end at the same time as the Federal Reserve begins printing trillions of Dollars and China potentially becomes a net seller of U.S. Treasuries. The perfect storm is ahead for massive inflation to begin in the second half of 2009. Being that our country already has an $11 trillion national debt and $55 trillion in unfunded liabilities for social security, Medicare, and other social programs; hyperinflation during the next decade is becoming less the worst case scenario and more the most likely scenario.

Our country's current financial crisis is a walk in the park compared to what is ahead. Despite rapidly rising unemployment rates, Americans today can still purchase very cheap food, clothing, and gas. We can't take this for granted and must prepare for what is ahead.

If you prepare for the worse, the best will always happen. Americans who begin preparing for hyperinflation now, not only could preserve their purchasing power in the years ahead, but could potentially become wealthy as Americans hoarding U.S. Dollars, bonds and other dollar-denominated assets lose everything. We believe there will soon be a Gold, Silver, and Agriculture boom that will make the dot-com and Real Estate booms look small in comparison."

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Recession Has No Effect on Mid-Income Retirement Hopes

/PRNewswire/ -- The recession has forced nearly two in five (39 percent) Americans to save less for their golden years, but it hasn't changed their perception about whether middle income families can save for retirement.

Thirty-five percent of Americans believe it is possible for a typical middle income family to save for a secure retirement, according to a new COUNTRY Financial Survey. While that percentage doesn't necessarily paint a positive picture, it's virtually unchanged from the prior two years - 36 percent in 2008 and 37 percent in 2007 - when the US economy was in a better state.

Yet, the recession is having an impact on people's plans as more than one-quarter of the adults (26 percent) surveyed say the effects of today's economy will cause them to delay their retirement.

"It's encouraging that all the bad news has not caused people to give up hope," says Keith Brannan, vice president of Financial Security Planning at COUNTRY. "If you're struggling, review and adjust your financial plan to get by in the short-term without losing sight of long-term goals like retirement. If you don't have a plan, you may want to talk to a professional who can help you create a tangible plan to get from where you are today to where you want to be in the future."

Genders split on best saving skills for the future
-- Overall, Americans think women (37 percent) are better at saving and
investing for the future than men (29 percent). However, men think
they are better at this task (42 percent) while women believe they
have the upper hand (49 percent).


Employers pull back on contributions
-- Nearly one-quarter of Americans (23 percent) who participate in a
work-sponsored plan like 401(k) say their employer has cut
contributions to their retirement account.


"If your employer has cut their contributions to your retirement account, you have several options to choose from to maximize your retirement plan," adds Brannan. "The worst thing you can do is to stop contributing to retirement just because you no longer have a company match."

Tips for maintaining retirement savings in tough times:
-- Establish and maintain an emergency fund. In these tough times, it's
important to have an emergency fund sufficient to cover at least three
months of your expenses saved in a highly-liquid account, such as a
money market mutual fund or a savings account.
-- Try not to borrow against your 401(k) account. Besides borrowing
against your future, if you leave your employer, you may still be
responsible for paying the loan back within 60 days. If you can't
repay it within that time, IRS penalties could be imposed.
-- If your employer stops matching your 401(k) contributions, consider
redirecting your contributions to a Roth IRA. In addition to
providing tax-free income once you retire, you can liquefy your
contributions at any time for any reason without IRS penalty or income
tax consequences.

For more information on Americans' sentiments about financial security, please visit www.countryfinancialsecurityindex.com.

The March COUNTRY Retirement survey is based on a national telephone survey of 3,000 Americans and is compiled by Rasmussen Reports, LLC (www.rasmussenreports.com), an independent research firm. The margin of sampling error for this survey is approximately +/- 2 percentage points with a 95 percent level of confidence.

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Fed Urged to Require Banks to Get Customers' Permission First Before Enrolling Them in Expensive Overdraft Programs

/PRNewswire-USNewswire/ -- Banks shouldn't be allowed to automatically enroll their customers in expensive overdraft loan programs, according to Consumers Union, the nonprofit publisher of Consumer Reports. The group urged the Federal Reserve Board in a letter today to require banks to get their customers' permission first before signing them up for high fee overdraft loan programs for overdrafts triggered by ATM and debit transactions.

The Fed is currently considering whether consumers should be given the right to opt-in before banks can enroll them in overdraft programs covering ATM and debit transactions or simply a right to opt-out after the bank has signed them up for overdraft coverage. The Fed is accepting public comment on these two proposals through March 30. For a copy of Consumers Union's letter to the Fed, see: http://www.consumersunion.org/pub/pdf/overdraft-comments-309.pdf

"Most banks automatically enroll their customers in so-called 'overdraft protection' programs, which are really high-cost loans that cost consumers billions of dollars every year," said Lauren Zeichner Bowne, Staff Attorney for Consumers Union. "The Federal Reserve Board should protect consumers from unfair overdraft loan programs by stopping the fees unless the consumer makes the choice to opt-in to the loan program."

Banks collect an estimated $7.8 billion in fees from overdrafts triggered by debit and ATM transactions. These overdrafts could be prevented with a simple warning or if the transaction was declined. Instead, most banks let these transactions go through and charge consumers a fee for each overdraft. The FDIC found that the median fee for overdrafts is $27, even though the average overdraft is triggered by transactions totaling $17.

A national poll by the Consumer Reports National Research Center found that many consumers do not understand how overdraft programs work. According to the poll, 39 percent of consumers thought that their bank would either deny a debit transaction or allow it to proceed without charging a fee if it would overdraw their account. Nearly half of those polled (48 percent) thought their ATM card would not work if they attempted to withdraw more money than was available in their account.

Consumers Union released the poll results in comments filed in support of the opt-in proposal with the Federal Reserve Board. The group opposes the opt-out proposal because the evidence suggests that most consumers will not change their status if banks automatically enroll them in overdraft programs.

The vast majority of consumers have accounts at banks that automatically enroll customers in programs that allow debit and ATM transaction to trigger overdrafts. An FDIC study found that "institutions that use automated programs to cover overdraft obligations accounted for almost 73 percent of deposit dollars held in the study population banks."

Automatic fee-based overdraft programs are the most expensive option for consumers so banks don't have an incentive to sell lower cost services, such as linked accounts or lines of credit. The FDIC has concluded that the fees assessed for these other types of programs are significantly lower than for automatic overdraft loan programs.

The Consumer Reports poll found that the overwhelming number of consumers want a real choice when it comes to overdraft programs. The poll found that two-thirds of consumers (66 percent) said they prefer to expressly authorize overdraft coverage, so that there would be no overdraft loan -- or fee -- until they opted in to the service. Similarly, two thirds (65 percent) said that banks should deny a debit or ATM transaction if the checking account balance is too low.

In its comments to the Federal Reserve Board, Consumers Union also urged the Board to declare that fee-based overdraft loans are extensions of credit that should be subject to the Truth in Lending Act and Regulation Z requirements to disclose their cost in terms of an annual percentage rate. For the average overdraft, the APR would equal 4,140 percent.

The FDIC has found that banks commonly process transactions from largest to smallest, which increases the number of overdrafts. Consumers Union urged the Fed to restrict this practice when it issues its new overdraft regulations. In addition, the group called on the Fed to prohibit banks from charging fees if the overdraft was triggered because the bank placed a hold on a customer's deposit, and to cap the daily and monthly totals for allowable overdraft fees.

"If banks believe that overdraft programs are truly beneficial, then they should be required to persuade their customers to sign up before they can charge them such high fees," said Zeichner Bowne. "The Fed should end automatic enrollment in costly overdraft programs by giving consumers the choice to opt-in. Consumers concerned about high cost overdraft fees have until March 30 to support these important new rules." Consumers can learn more and submit comments to the Fed at: http://cu.convio.net/OverDraft

The Consumer Reports National Research Center conducted a telephone survey using a nationally representative probability sample of telephone households. 679 interviews were completed among adults aged 18+ who reported having a checking account with an ATM card or a debit card. Interviewing took place over February 5-8, 2009. The sampling error is +/- 3.8% at a 95% confidence level.

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.

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