When Chicago shuts down to save money then you know that things must be really bad for the windy city but is closing down the whole city of Chicago in order to save money really a good solution or just a short term, non-effective desperate measure. One could also ask whether the fact that Chicago shuts down to save money will turn into a regular trend for the city and if it is accepted perhaps will become a national trend.

When Chicago shuts down to save money today, which will mean almost a total 24 hour standstill of public services, it is estimated that the city will alleviate it’s somewhat gigantic $ 300 million budget shortfall. When Chicago shuts down to save money it will mean that all non-essential services such as trash collection, libraries, libraries etc. will all be closed in the first of three scheduled service reduction days. City authorities hope that when Chicago shuts down to save money it will save an estimated $8.3 million dollars which barely scratches the surface of the current deficit. This measure also calls for workers to take unpaid vacation in order to show support for this drastic measure. Chicago’s Mayor Richard M Daley said he greatly appreciated the sacrifice being made and that every dollar saved will lead to job creation for folks today and the future generations of Chicago. He also stated the steps require most folks to accept some form of cuts in order to deal with the current budget crisis.

Two more such days have already been planned in the “Chicago shuts down to save money” scheme which may have drastic results during the holiday period. The next such day is planned for 27th of November the day after Thanksgiving day and the final is planned for 24th of December Christmas eve. During these two following “shut down” days workers have been asked to take some unpaid days off and accept vacation without salary.

Chicago isn’t alone when it comes to tightening the belt as states throughout the U.S. follow suit in a bid to reduce costs and curb outlandish budget shortages.California, for example has declared a monetary emergency enforcing a three day a month public sector stste offices closure and Michigan plans to withhold public sector pay from it’s employees for the last week in September.

It looks like the “season of joy” could be anything but merry for a lot of folks across the U.S. this coming holiday season.

US sugar supplies ‘running out’ because of the import limits being imposed on manufacturers by the American government. These curbs are causing a scare among makers of sugar based products who say that if the current rules stay in place that it could lead to a scarcity in US sugar supplies. Read the full story

The worldwide economic meltdown has begun to take toll on banks worldwide with bank collapsing around the world. The Wall Street Journal in a latest article headlined, “Nigeria Plans $2.6 Billion Bank Bailout, Ousts Top Executives” by Will Connors revealed that Banks in Nigeria, despite being a big petroleum exporter and Sub-Saharan Africa’s second-largest economy has lent heavily during the oil price boom which triggered borrowing and investment bonanza in the country.

That left many banks overexposed when commodities prices turned around, the world sank into its current economic slump and Nigerian shares fell. The Nigerian Stock Market has declined roughly 60% from its highs early last year.

On Friday, Nigeria’s newly installed central-bank governor, Lamido Sanusi, cited high levels of nonperforming loans discovered by audits being conducted at all 24 of Nigeria’s banks. Five other banks have passed audits.

from The Wall Street Journal.

In the United States, Examiner dot com today revealed that this year alone, 72 banks have collapse and according to Bloomberg, Colonial Bank, the biggest, with a asset horde of $25 billion dollars, is being taken over by BB& T, making it the largest bank to collapse.

a federal judge ruled that Colonial Bank cannot transfer any of its assets. The judge stated, “Viewing Colonial’s contractual breach in conjunction with the fact that Colonial is on the brink of collapse and is suspected of criminal accounting irregularities, the potential for immediate substantial injury to Bank of America is clear.”

Colonial Bank was one of the primary lenders in the state of Florida during the recent building boom. With many mortgages and lenders depending upon the bank, the fall out would be huge. Colonial Bank has 355 branches throughout five states, Alabama, Florida, Georgia, Nevada, and Texas.

from examiner.com

As compared to more developed countries, smaller and lessor developed countries seems to be holding considerably better during this economically troubled times. No reports of bank collapse have been reported but this might be due to the fact that in, smaller and poorer nations, Banks are watched over by the Government, so they are kind of protected from collapsing.

Developed nations have frowned upon this practice of protectionism citing that it is against the basics of a free economy whereby a nation’s wealth is determined by free market forces and not by a protective shield casted by the Government.

These nations have however, argued that if they don’t protect their economy, speculators with cash reserves that exceeds the foreign reserves of many smaller countries, will and can have a filed day with their currency speculation like what happened during the 1997 economy crisis in Asia. During that period, many banks did collapse and it prompted countries to take stringent measures to protect their economy from future attacks.

However this does not mean that these countries are not feeling the intense heat of this current economic meltdown. The world is a borderless one these days. Whatever happens in one country, will inevitably and virally affect another until it goes global. Especially if a super power like the United States is reeling on it’s knees. There used to be a saying that goes, “When the US sneezes, the whole world shakes” Well, this time, she has developed a terrible whopping cough and there don’t seem to be a cure for it.

Active since around July 1st, the cash for clunkers voucher program was designed to help American auto manufacturers by providing incentives to car buyers around the country. Initially, the government set aside a Billion dollars for the program but the program almost got suspended when concerns arose that the billion was already spent! what did our astute politicians do? They allocated another 2 Billion, effectively tripling the original budget.

So how does this cash for clunkers voucher program work exactly? Well, there was some controversy about that for a while, but from what I can tell, you would be elegible for between a $3500 and a $4500 voucher if your car meets certain conditions. First of all, your car must be in drivable condition. You can tow it to the dealership. Even though, as I drive up and down the highway, I’ve seen dealerships advertising the cash for clunkers voucher program by posting signs on complete wrecks with messages like “This vehicle worth $4,500!!”. Despite auto dealerships marketing nonsense, the car must be drivable. In addition, it must hae been insured to the same owner for at least a year prior to trading it in. That means you can’t go buy your grandfathers old Buick monstrosity for ten bucks just so you can trade it in for a new Toyota tiny car. The car needs to be no older than a 1984 model which means they don’t want Dad’s old Ford Fairlane from the 50s either! And finally, the car needs to have a fuel economy rating of 18 mpg or less which kind of sucks because there are tons of big old gas guzzlers out there that supposedly get 20 to 25 miles to the gallon in theory, but in actuality get 15 – 18 mpg, but it is what it is.

Also, make sure you CHECK to see if your car is eligible since some cars that previously qualified have been removed from the list. You don’t want to get a deal going and then suddenly find out that your car has been excluded. Why has this happened? the EPA has suddenly decided to revise their fuel-efficiency ratings, so some cars have become ineligible.

One good bit of news, the new car you choose doesn’t have to actually be on the lot to qualify. The Transportation Department siad that people can purchase cars that are not yet on the lot and still be eligible for a cash for clunkers voucher.

If you want to find out if your car is eligible for the cash for clunkers voucher program, visit cars.gov for more information.