While traversing the web in search of great new websites with potential, I stumbled upon ThoughtBlend.com, a free Web 2.0 idea community. The interface was clean, the database was robust for being only two months old, and the ideas were flowing.
After browsing a few categories I clicked on a couple of ideas that caught my eye and really enjoyed to read the forum-style comments that left a breadcrumb trail of thoughts following each idea. Users in the community were really working together to perfect, or critique other users' ideas.
As for features, I was able to add good ideas and users to my favorites lists to return to them later, and I was able, like any good Web 2.0 website, to rate other users' ideas and comments.
Users also earned points for posting ideas, as well as getting rated on their ideas and comments, so by clicking "brainstormers" I was instantly taken to a scoreboard topped by the users with the most activity.
All in all, ThoughtBlend is a great sandbox to throw your ideas out there and see what the masses think of it. Heck, we all have great ideas sometimes, but often it's hard or impossible to ever implement them. That doesn't mean they should go unnoticed though.
Thursday, September 4, 2008
Friday, March 7, 2008
What If Your Interview Is Tomorrow?
Even if you have less than a day before your job interview, you can outshine the competition with a little preparation. The following four tasks will take you about four hours (plus five minutes) to complete, and you'll walk into the interview confident you'll be successful.
Conduct Basic Interview Research
Find out as much as you can about the interview. Call the person who scheduled your appointment and ask:
Who will you be talking to?
Will you meet the manager you'd work for, or will you just talk to HR?
What are the interviewer's expectations?
What's the dress code? Dress better than suggested. Most times, it's best for men to wear a suit and women to wear a professional business outfit. You'd be amazed how many candidates show up looking like they're going to class, not presenting a professional demeanor.
Get directions to the office. Plan to leave early. Keep a phone number to call if you get stuck on the bus or in traffic. If you arrive late and stressed, the interview will not go well.
If you don't have a detailed job description, ask for one.
That's a five-minute phone call....read more
Conduct Basic Interview Research
Find out as much as you can about the interview. Call the person who scheduled your appointment and ask:
Who will you be talking to?
Will you meet the manager you'd work for, or will you just talk to HR?
What are the interviewer's expectations?
What's the dress code? Dress better than suggested. Most times, it's best for men to wear a suit and women to wear a professional business outfit. You'd be amazed how many candidates show up looking like they're going to class, not presenting a professional demeanor.
Get directions to the office. Plan to leave early. Keep a phone number to call if you get stuck on the bus or in traffic. If you arrive late and stressed, the interview will not go well.
If you don't have a detailed job description, ask for one.
That's a five-minute phone call....read more
Monday, February 4, 2008
How to make money with your hobby
You can make money from your hobby.
Whether you knit, or write, or make photographs, or grow a vegetable garden, or tinker with cars, or build web sites, or collect ancient coins — you can make money from your hobby.
I’m not saying it’s possible to get rich by playing your violin at weddings, or by weaving baskets from pine needles, but earning money from a hobby is a nice way to get paid for doing something you would do anyhow.
First, by way of introduction, here are some ground-rules for making money from hobbies.
Focus on something you love
Pursue something you’re passionate about. Choose a hobby that you enjoy, and find a way to make money from it. Don’t choose a hobby simply because it might make money and then dive into it with that aim in mind. You should be doing this hobby because you love it; any side-income should be secondary.
Keep it fun. Don’t let it become a chore.
Be creative
If you’re interested in making money from a hobby but don’t know where to start, think outside the box. What skills do you have that others don’t? Define the term “hobby” broadly. Find something that you can do that most others cannot, something for which other people might be willing to pay.
Don’t force it
Your hobby will not make you rich. In most cases, it won’t even net you enough to allow you to quit your day job. It’s quite possible, however, to earn enough money to make the hobby self-sustaining, to keep yourself in new tools and equipment.
Don’t underestimate your ability
It’s easy to discount your abilities. When you truly love something, your prolonged experience can give you skills and knowledge that you don’t appreciate.
Market yourself
This can be difficult. In order to actually earn income, you need customers. But just as most people have a tendency to underestimate their abilities, they also tend be uncomfortable with self-promotion. Try websites like www.racooda.com to find others who need things done and are willing to pay.
Hone your skill
Practice, practice, practice. The more time and energy you’re willing to devote to your hobby, the better you will become. The better you become, the more likely that you’ll be able to earn money from it.
read more from this article...
Whether you knit, or write, or make photographs, or grow a vegetable garden, or tinker with cars, or build web sites, or collect ancient coins — you can make money from your hobby.
I’m not saying it’s possible to get rich by playing your violin at weddings, or by weaving baskets from pine needles, but earning money from a hobby is a nice way to get paid for doing something you would do anyhow.
First, by way of introduction, here are some ground-rules for making money from hobbies.
Focus on something you love
Pursue something you’re passionate about. Choose a hobby that you enjoy, and find a way to make money from it. Don’t choose a hobby simply because it might make money and then dive into it with that aim in mind. You should be doing this hobby because you love it; any side-income should be secondary.
Keep it fun. Don’t let it become a chore.
Be creative
If you’re interested in making money from a hobby but don’t know where to start, think outside the box. What skills do you have that others don’t? Define the term “hobby” broadly. Find something that you can do that most others cannot, something for which other people might be willing to pay.
Don’t force it
Your hobby will not make you rich. In most cases, it won’t even net you enough to allow you to quit your day job. It’s quite possible, however, to earn enough money to make the hobby self-sustaining, to keep yourself in new tools and equipment.
Don’t underestimate your ability
It’s easy to discount your abilities. When you truly love something, your prolonged experience can give you skills and knowledge that you don’t appreciate.
Market yourself
This can be difficult. In order to actually earn income, you need customers. But just as most people have a tendency to underestimate their abilities, they also tend be uncomfortable with self-promotion. Try websites like www.racooda.com to find others who need things done and are willing to pay.
Hone your skill
Practice, practice, practice. The more time and energy you’re willing to devote to your hobby, the better you will become. The better you become, the more likely that you’ll be able to earn money from it.
read more from this article...
Thursday, January 31, 2008
The "Rule of Thirds" Job Search
It seems a lot of people are having trouble with using job boards to the fullest. I've been in the staffing business for a while now, primarily IT and Financial, and I've found a lot of resumes that should have been sent to me via a post on a job board. So, I came across this "Rule of Thirds" method and thought I would share this with all the hardworking people who may not be utilizing job boards to their full potential. The Job Bored career blog recommends sticking to a "Rule of Thirds"—sending out three resumes each to jobs you're slightly underqualified for, jobs you're sure you can pull, and random jobs you find in your search. In addition to narrowing your search, you force yourself into a better position to be hired:
"By forcing my clients to wait, I found that they'd done more research on each company/position in the intervening time. They were often better prepared, and sometimes had even taken the time to find other avenues of applying, such as walking in and applying in person."
Another good point made is that job-seekers too often neglect the "random" category, which can sometimes bring the most unexpected (yet welcome) surprises. What's your job finding technique? Share your wisdom in the comments.
Visit Racooda, get things done and use your niche to make some extra cash on the side!
"By forcing my clients to wait, I found that they'd done more research on each company/position in the intervening time. They were often better prepared, and sometimes had even taken the time to find other avenues of applying, such as walking in and applying in person."
Another good point made is that job-seekers too often neglect the "random" category, which can sometimes bring the most unexpected (yet welcome) surprises. What's your job finding technique? Share your wisdom in the comments.
Visit Racooda, get things done and use your niche to make some extra cash on the side!
Tuesday, January 22, 2008
Starting a website
Starting a website is a great way to earn income on the side. The overhead is relatively low and after initial advertising, usually with some luck traffic could be self-sustaining. However it is a rocky road at the beginning to get users.
Recently I started a website with 2 others. We decided to first create an LLC to protect us as well as afford us scalability if we wanted to create more websites in the future. We chose the name, Racooda, and dedicated it to side jobs which was a tough decision but a great one in retrospect. Getting the idea for the website was very hard, being that most ideas are already taken. Also the domain name was tough because so many jerks out there buy domains and squat on them, looking for the best offer. Racooda ended up being a derivative of the word barracuda, which we all agreed was fun to say.
The website took about 3 months to make in my spare time, and after hack-testing it and making sure we were golden, we opened it up to the public on January 1, 2008. Reaching out to friends and family, we got a good amount of traffic and attention, earning about $8 in the first week from ad clicks. Then things seemed to taper off.
We printed fliers and put them all around, on tables and stands in malls and stores, even a few cars. What I saw was discouraging - traffic actually dropping after the fliers hit the public. We're on the verge of printing another 1000 and I'm hopeful that the smaller size of the new batch will help us carry them easier and will look less spam-like.
Online advertising has been tough too. Every place we've tried to post about Racooda has either banned me or deleted my post, from myspace forums to offtopic.com. They claim it's spam. I even cut down my posts to what sounds as honest as I could - "i just started a website and am looking for feedback" but NO avail - I'm still a spammer apparently.
Other free methods we've tried are myspace bulletins, discussion boards / forums, wikipedia and networking with people we already know. Wikipedia was the quickest to delete my post - about 3 minutes. The fliers might get shrunken down also to business card size I'm expecting, which would make them easier to carry around.
Next month will be paid advertising month, where we will go into a few local newspapers and see what happens with that.
Recently I started a website with 2 others. We decided to first create an LLC to protect us as well as afford us scalability if we wanted to create more websites in the future. We chose the name, Racooda, and dedicated it to side jobs which was a tough decision but a great one in retrospect. Getting the idea for the website was very hard, being that most ideas are already taken. Also the domain name was tough because so many jerks out there buy domains and squat on them, looking for the best offer. Racooda ended up being a derivative of the word barracuda, which we all agreed was fun to say.
The website took about 3 months to make in my spare time, and after hack-testing it and making sure we were golden, we opened it up to the public on January 1, 2008. Reaching out to friends and family, we got a good amount of traffic and attention, earning about $8 in the first week from ad clicks. Then things seemed to taper off.
We printed fliers and put them all around, on tables and stands in malls and stores, even a few cars. What I saw was discouraging - traffic actually dropping after the fliers hit the public. We're on the verge of printing another 1000 and I'm hopeful that the smaller size of the new batch will help us carry them easier and will look less spam-like.
Online advertising has been tough too. Every place we've tried to post about Racooda has either banned me or deleted my post, from myspace forums to offtopic.com. They claim it's spam. I even cut down my posts to what sounds as honest as I could - "i just started a website and am looking for feedback" but NO avail - I'm still a spammer apparently.
Other free methods we've tried are myspace bulletins, discussion boards / forums, wikipedia and networking with people we already know. Wikipedia was the quickest to delete my post - about 3 minutes. The fliers might get shrunken down also to business card size I'm expecting, which would make them easier to carry around.
Next month will be paid advertising month, where we will go into a few local newspapers and see what happens with that.
Tuesday, January 15, 2008
16 Ways to Drive Traffic to Your Blog
Do you work any jobs on the side? Racooda.com will help you find side work in your area for FREE!.
You've got your blog set up and you've started posting pithy, useful information that your niche market would benefit from and enjoy. Days go by, you keep publishing, but no one comments and your traffic stats are barely registering. What do you do?
Like any website you own, you must do some blog promotion to start driving traffic to your site. Here are 16 steps, in no particular order of importance, that you can start doing now to get traffic moving to your blog.
1. Set up a Bloglet subscription form on your blog and invite everyone in your network to subscribe: family, friends, colleagues, clients, associates.
2. Set up a feed on MyYahoo.com so your site gets regularly spidered by the Yahoo search engine (see tutorial on biz tips blog)
3. Read and comment on other blogs that are in your target niche. Don't write things like "nice blog" or "great post." Write intelligent, useful comments with a link to your blog.
4. Use Ping-0-matic to ping blog directories. Do this every time you publish.
5. Submit your blog to traditional search engines
6. Submit your blog to blog directories. The most comprehensive list of directories is on this site:
http://www.masternewmedia.org/rss/top55/
read more...
You've got your blog set up and you've started posting pithy, useful information that your niche market would benefit from and enjoy. Days go by, you keep publishing, but no one comments and your traffic stats are barely registering. What do you do?
Like any website you own, you must do some blog promotion to start driving traffic to your site. Here are 16 steps, in no particular order of importance, that you can start doing now to get traffic moving to your blog.
1. Set up a Bloglet subscription form on your blog and invite everyone in your network to subscribe: family, friends, colleagues, clients, associates.
2. Set up a feed on MyYahoo.com so your site gets regularly spidered by the Yahoo search engine (see tutorial on biz tips blog)
3. Read and comment on other blogs that are in your target niche. Don't write things like "nice blog" or "great post." Write intelligent, useful comments with a link to your blog.
4. Use Ping-0-matic to ping blog directories. Do this every time you publish.
5. Submit your blog to traditional search engines
6. Submit your blog to blog directories. The most comprehensive list of directories is on this site:
http://www.masternewmedia.org/rss/top55/
read more...
Monday, January 14, 2008
How Bloggers Make Money
Need help finding side jobs? Racooda.com might be a good start.
Advertising Programs - Perhaps the most obvious changes in the past few months have been with the addition of a variety of viable advertising options for bloggers looking to make money from their blogs. The most common way bloggers seem to earn money online is via the contextual ad program from Google - Adsense. A more recent addition that many are using successfully are Chitika’s eMiniMalls and WidgetBucks, Text Link Ads.
Azoogle Ads, Intelli Txt, DoubleClick, Tribal Fusion, Adbrite, Clicksor, AdHearUs, Kanoodle, Pheedo, TextAds, Bidvertiser, Fastclick and Value Click (to name just some of the options) and there is a smorgasbord of options. Of course there is more to come with MSN Adcenter and YPN both in beta testing and with a variety of other advertising system currently in development (YPN is only available to US publishers).
Lastly there’s BlogAds - one of the first blog specific ad networks.
RSS Advertising - The past 12 months have seen some advances in RSS Advertising also. I’m yet to hear of any bloggers making big money blogging through it to this point - but as improvements are made to the ad programs exploring this I’m sure we’ll start to see examples of it being profitable.
Affiliate Programs - There are larger affiliate programs like Amazon, Linkshare, Clickbank and Commission Junction but also literally thousands of others from the large to the very small. read more
Advertising Programs - Perhaps the most obvious changes in the past few months have been with the addition of a variety of viable advertising options for bloggers looking to make money from their blogs. The most common way bloggers seem to earn money online is via the contextual ad program from Google - Adsense. A more recent addition that many are using successfully are Chitika’s eMiniMalls and WidgetBucks, Text Link Ads.
Azoogle Ads, Intelli Txt, DoubleClick, Tribal Fusion, Adbrite, Clicksor, AdHearUs, Kanoodle, Pheedo, TextAds, Bidvertiser, Fastclick and Value Click (to name just some of the options) and there is a smorgasbord of options. Of course there is more to come with MSN Adcenter and YPN both in beta testing and with a variety of other advertising system currently in development (YPN is only available to US publishers).
Lastly there’s BlogAds - one of the first blog specific ad networks.
RSS Advertising - The past 12 months have seen some advances in RSS Advertising also. I’m yet to hear of any bloggers making big money blogging through it to this point - but as improvements are made to the ad programs exploring this I’m sure we’ll start to see examples of it being profitable.
Affiliate Programs - There are larger affiliate programs like Amazon, Linkshare, Clickbank and Commission Junction but also literally thousands of others from the large to the very small. read more
Thursday, January 10, 2008
Jobs weak, unemployment soars
Need help finding side jobs? Racooda.com might be a good start.
Employers add fewer to payrolls than forecast, and the jobless rate hits 5%, a two-year high.
NEW YORK (CNNMoney.com) -- The nation's labor market worsened in December to the weakest level since the shock that followed Hurricane Katrina, as the problems in housing and mortgages took a bite out of job opportunities.
Employers added far fewer jobs in the month than had been forecast, while the unemployment rate shot up to 5 percent, which was a two-year high, according to a government report Friday.
Stocks sold off sharply on rising fears of a possible recession and there was a widespread belief in the markets that the Federal Reserve would have to respond to this report with a sharp drop in interest rates.
"December's bleak jobs report represents the siren call that this business cycle is just about over," said Bernard Baumohl, the managing director of the Economic Outlook Group, an economic research firm in Princeton, NJ. "We're about to tilt over to the other side of the economic curve and begin the downswing."...read more
Employers add fewer to payrolls than forecast, and the jobless rate hits 5%, a two-year high.
NEW YORK (CNNMoney.com) -- The nation's labor market worsened in December to the weakest level since the shock that followed Hurricane Katrina, as the problems in housing and mortgages took a bite out of job opportunities.
Employers added far fewer jobs in the month than had been forecast, while the unemployment rate shot up to 5 percent, which was a two-year high, according to a government report Friday.
Stocks sold off sharply on rising fears of a possible recession and there was a widespread belief in the markets that the Federal Reserve would have to respond to this report with a sharp drop in interest rates.
"December's bleak jobs report represents the siren call that this business cycle is just about over," said Bernard Baumohl, the managing director of the Economic Outlook Group, an economic research firm in Princeton, NJ. "We're about to tilt over to the other side of the economic curve and begin the downswing."...read more
Tuesday, January 8, 2008
Your Best Tax Strategy - Start a Side-Business
Need help finding side jobs? Racooda.com might be a good start.
Save money on your taxes with a home business!
By Doris Dobkins
I'm busy enough! I don't have time to start a business!
What good would it do me anyway?
Well, having your own business is one of the best ways to save money on taxes. Considering that at tax time, many of you pay your government all your wages from January to May, you might be interested in this topic. (Please note that this advice is based on the US tax code. If you live elsewhere, your mileage may vary.)
Consider this example.
If you work for someone else (as in a JOB), your finances flow somewhat like this:
1. Earn the money
2. Pay Taxes
3. Spend the money
When you have your own business or corporation, you:
1. Earn the money
2. Spend the money
3. Pay Taxes on what's left
Do you see the difference here?...read more
Save money on your taxes with a home business!
By Doris Dobkins
I'm busy enough! I don't have time to start a business!
What good would it do me anyway?
Well, having your own business is one of the best ways to save money on taxes. Considering that at tax time, many of you pay your government all your wages from January to May, you might be interested in this topic. (Please note that this advice is based on the US tax code. If you live elsewhere, your mileage may vary.)
Consider this example.
If you work for someone else (as in a JOB), your finances flow somewhat like this:
1. Earn the money
2. Pay Taxes
3. Spend the money
When you have your own business or corporation, you:
1. Earn the money
2. Spend the money
3. Pay Taxes on what's left
Do you see the difference here?...read more
Jobs on the side
Having a Second job is more than just an idea -- second jobs are becoming increasingly necessary for many people. More than seven million Americans hold second jobs. And although you might think most people who have second jobs are in minimum wage positions, studies suggest that teachers, police officers, engineers, nurses and other professionals often hold down second jobs. Having a side job can help you with your financial goals.
If you can fit a second job around your existing job, you can more easily pay off student loans, save for a downpayment, pay off a car, eliminate credit card debt, fund vacations, top up retirement savings -- or make ends meet. Just make sure your second job doesn't interfere with your main job. Look for work that accommodates your existing position and lets you get eight hours of sleep at night.Of course, if you become a consultant and hang on to your day job, you'll have a great second job. Also, racooda.com offers people looking for side work the opportunity to scan side jobs in their area. But if you're looking for other ideas, consider these:
- Second job / side job ideas
- Teach ESL
- Teach courses at your local community centre, college continuing studies program, or community college
- Get a job at a retail or department store, especially during the holiday season. You may even get discounts on purchases.
- Tutor
- Cut lawns
- Do landscaping
- Babysit
- Clean houses
- Become a handyman/woman
- Bar tend
- Deliver pizza
- Pet sit
- House sit
- Walk dogs
- Run errands
- Type
- Do desktop publishing
- Grade SATs -- check out the College Board website
- Sell stuff on eBay and other online auction sites Again, consulting makes a great second job choice -- and may pay anywhere from $35 to $300 an hour!
- Sign up for an account on racooda.com to find people who need work done.
Monday, January 7, 2008
US jobs report shows slide into Recession
The official US unemployment rate shot up 0.3 percentage points in December to a two-year high of 5 percent and job growth virtually ceased, according to the Labor Department’s monthly report, issued on Friday.
The dire employment report, coming on the heels of record petroleum prices, a sharp rise in consumer and wholesale prices, weak holiday sales, and data showing a falloff in manufacturing and further declines in the housing market, sent stock markets in the US and Europe tumbling.
On New York markets, the Dow Jones Industrial Average fell 257.44 points, or 2 percent, the Standard & Poor’s 500 Index declined by 35.53 points (2.46 percent), and the technology-laden Nasdaq Composite Index plunged 98.03 points, or 3.77 percent.
Friday’s sell-off followed sharp drops on the final trading day of 2007 and the first day of trading in the new year. In just three trading days this year, the Dow Jones index has erased more than half of its gains for all of 2007. It is already down 3.5 percent in 2008.
Wall Street analysts had expected a weak jobs report, with only 70,000 new jobs and a rise in the jobless rate from 4.7 percent in November to 4.8 percent for December. But the Labor Department report was far worse, showing that a mere 18,000 new non-farm jobs had been created in December.
Private sector jobs actually declined by 13,000, the first monthly net cut in jobs by private employers since 2003. Government jobs grew by 31,000, accounting for the negligible overall increase.
Goods producing payrolls fell by 75,000, including a 49,000 drop in construction and a 31,000 decline in factory jobs. Retail jobs fell by 24,300 and financial services payrolls shrank by 4,000. Service industry jobs rose by 93,000.
Overall, December registered the lowest monthly increase in jobs in over four years, and the total increase in payrolls for 2007 was the lowest since 2003.
The slump in manufacturing was broadly based. Of 84 manufacturing industries, only 31.5 percent were hiring in December.
Wall Street also reacted negatively to the Labor Department’s data on wages. They showed a 0.4 percent increase (7 cents) in December, considered dangerously high by the corporate-financial establishment. Analysts had anticipated a gain of only 0.3 percent. In fact, wages for all of 2007 rose by only 3.7 percent, compared to 4.3 percent in 2006.
Under conditions of rising inflation, with consumer prices up by an annual rate of 4.3 percent in November, and soaring prices for gasoline, food and other necessities, the buying power of American workers is continuing to fall.
The jobs report shows that the collapse of the US housing market and the consequent credit contraction and banking crisis, resulting from the failure of hundreds of billions worth of speculative investments linked to subprime home mortages, has spilled over into the general economy and is rapidly leading to a recession.
The jobless rate has risen by 0.6 percent since March of 2007. Robert Brusca of FAO Economics noted, “When unemployment rises by more than 0.5 percent from its cycle low, a recession generally ensues.”
The consequences of a slump in the US are potentially massive, deep and protracted, since it will reverberate internationally and compound an already raging financial crisis that threatens the solvency of major banks in the US and Europe.
The crisis in the banking system continues to deepen and spread. This week, National City Corporation, a regional bank with 1,400 branches, mostly in Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio and Pennsylvania, announced that it was shutting its wholesale mortgage division and slashing 900 jobs.
This brings to 3,400 the number of jobs the bank has eliminated in recent months as a result of housing-related losses. The job cuts represent 10 percent of the bank’s previous staff. National City also said it would cut its dividend nearly in half.
The slide into recession is compounded by a build-up of inflationary pressures and an ongoing decline in the US dollar. The dollar has resumed its downward slide against the euro, the yen and other currencies in the new year. Falling international confidence in the US currency is a major factor in the continuing surge in oil and gold prices, which hit record highs on Wednesday, with petroleum reaching the 100-dollar-a-barrel mark.
Prices of virtually all basic commodities are soaring. Oil, the dollar price of which was $61 at the end of 2006, is up 267 percent since 2001. Wheat, corn, rice, and metals such as copper are also surging. The year 2007 saw a 75 percent increase in wheat and soybean prices.
American consumers are being hit with the biggest jump in food prices in 17 years. As of last November, eggs were up 38 percent from the year earlier, and milk was 30 percent higher.
With home prices tumbling, working families can no longer compensate for stagnating wages, rising prices and growing indebtedness by refinancing their home loans. Home foreclosures are at record rates and experts predict between 1 and 2 million more families will lose their homes in the coming year. Even before the full force of recession has hit, personal bankruptcy filings in the US are rising at a record rate.
A further indication of the depth and breadth of the crisis can be gleaned from economic figures released over the past two weeks.
* Holiday sales: Spending from Thanksgiving to Christmas rose just 3.6 percent over last year, the weakest performance in at least four years, according to MasterCard Advisors. By comparison, sales grew 6.6 percent in 2006 and 8.7 percent in 2005.
Exceeding gasoline purchases, overall holiday sales rose a mere 2.4 percent, the credit card company said. With spending during November and December accounting for 20 percent of retailers’ annual revenue, the poor holiday sales augur a slump in consumer spending, which accounts for some two-thirds of the US gross domestic product.
* Auto sales: US sales of cars and light trucks fell in 2007 to their lowest level in nine years. General Motors sales fell 6.0 percent, Ford was down 11.8 percent, and Chrysler declined by 3.1 percent. The industry reported a 3 percent drop in sales in December. Most forecasters predict a further slide in 2008.
* Manufacturing: The Commerce Department reported that durable goods orders declined 0.1 percent in November, the fourth consecutive monthly decline. The Institute for Supply Management said its manufacturing index for December fell below the 50 percent break-even point, dropping to a nearly four-year low.
* Housing: New home sales fell 9 percent in November to a 12-year low. They were down 34.4 percent from their year earlier level. Sales of previously owned homes rose slightly in November from their October level, but were down 20 percent from November 2006. There has been a combined 34 percent drop in combined new and existing home sales from the July 2005 peak.
The median price of previously owned homes fell 3.3 percent in November from a year earlier.
Mortgage applications slid 11.6 percent in the week ending December 28.
The dismal jobs report has sparked new demands from Wall Street for the Federal Reserve Board to cut short-term interest rates. Since September, the Fed has cut its benchmark federal funds rate three times, reducing it a full percentage point to 4.25 percent. It has also flooded financial markets with cash and credit, most recently auctioning off $40 billion at low rates in two separate auctions. It plans to hold two more auctions this month, injecting an additional $60 billion into the banking system.
It is now considered a near certainty that the Fed will announce a further cut when its policy-making committee meets again at the end of January. But Wall Street wants a cut of at least 50 basis points, rather than the more conventional quarter-point reduction.
The Fed’s cheap credit policy carries huge risks, however, raising the specter of a run on the dollar and/or an explosive surge in inflation.
The simultaneous recessionary and inflationary crisis is the result of years of rampant speculation, compounded by various forms of accounting fraud and predatory lending policies by banks and mortgage companies. The crisis is an expression of the increasingly parasitic character of American capitalism, which generates huge fortunes for the wealthy few by speculative means that are divorced from and antagonistic to socially useful production.
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