About The Recession Diaries

From finance to foreclosures, layoffs and lack of opportunity, a daily journal of the economic crisis and its effect on black professionals.

THE BLOG FAMILY

In-your-face observations of art, entertainment and the world at large from someone who cares. Can you handle the truth?

NOVEMBER 19 | Only the Super Negro Sells Movie Tix in Europe

NOVEMBER 18 | Sarah Palin Says Newsweek Photo Is Sexist

NOVEMBER 16 | Anthony Sowell's Victims: Drug Addicted, Expendable and Murdered

One man's opinion on very nearly everything. It's hard but it's fair.

NOVEMBER 16 | Heather Ellis: Not That Innocent

NOVEMBER 13 | College Education Is No Longer an Option ... Is It?

NOVEMBER 12 | Hasan: Who Shot Ya?

Manners and mores in modern life? It's about way more than where the fork goes.

NOVEMBER 17 | Close Encounters of the Celebrity Kind

NOVEMBER 9 | No Present Like The Time

NOVEMBER 3 | My Cheap Best Friend

From finance to foreclosures, layoffs and lack of opportunity, a daily journal of the economic crisis and its effect on black professionals.

NOVEMBER 19 | Should We Be More Afraid of Identity Theft?

NOVEMBER 18 | The Cost of Celebrity Isn't What It Used To Be

NOVEMBER 17 | Calls For Job Growth Grow Louder

Smart, up to the minute takes on politics--from the state house to the White House. Pull up a chair.

NOVEMBER 16 | It'll Take More Than a Tantrum to Stop Gay Rights in D.C.

NOVEMBER 1 | First the Bill, Then the Work: Hate Crimes Legislation Passes

OCTOBER 27 | 'War in Afghanistan' Too Long, Too Heroic

Engaging commentary, interviews, and reviews that delve into and beyond the world of books. Get read.

NOVEMBER 19 | Reading List: The Poetry Edition

NOVEMBER 12 | Publishing with the Stars

NOVEMBER 6 | Producing Precious

A daily conversation on hot topic culture items. From Zora to Zane, True Blood to Tiny & Toya, TEWW covers high art, low-brow culture and everything in between.

NOVEMBER 17 | Beyoncé's Video Ho, er, Phone

NOVEMBER 13 | Oprah to Robin Givens: "I apologize."

NOVEMBER 12 | Illiteracy Begins and Ends at Home

MICHAEL'S BLOG ROLL

    Should We Be More Afraid of Identity Theft?

    Earlier this year, a reader sent in a letter about her experiences with identity theft. In her letter, she detailed how she missed out on her dream job opportunity after a background check revealed she failed to appear in courts over tickets she never knew she received. That was because someone stole her identity. By the time she settled her legal issues her dream offer was in limbo.

    Months after that letter was published I myself discovered that I had been a victim of identity theft. Someone stole my social security number and used it to work at a roofing company in Oakland. The closet I’ve been to Oakland is a Keyshia Cole album and I probably haven’t used the word roof in a sentence since 1997 (when people used to “raise them”). As you can imagine, I was shocked to find out someone hijacked my social number and treated it like an item at Rent-A-Center.

    Are others out there in danger of suffering each of our respective fates?

    NPR wrote:

    Crimes such as mortgage fraud, identity theft and, particularly, employee-related schemes appear to be on the rise, according to Orin Snyder, a former federal prosecutor who is now a litigation partner in the New York office of Gibson, Dunn and Crutcher.

    "There's no question that during the past year and a half, companies are reporting as a result of the financial contraction a spike in the kind of low-level, garden-variety frauds that in the aggregate can be very significant to companies: things like credit card fraud, insurance fraud and employee embezzlement," says Snyder. "We're also seeing an increase in data breaches and identity theft."

    Some of argued against these claims, making the case that companies simply have more time to pay closer attention to fraud. You know, with them having their pick of the litter these days and all.

    Not to play the paranoia game, but I can’t help but suspect more people are inclined to try their luck with white collar crime given the sheer desperation in light of the economy. Have you become wearier of being a victim of identity theft with rampant unemployment? Have you already been a victim?

    I’d love to hear your stories. Leave feedback below and send your stories (no, I mean it…send them) about your own battles with the recession by writing therecessiondiaries@gmail.com

    The Cost of Celebrity Isn't What It Used To Be

    When I’m not writing about the recession, race and culture, or sexuality I’m writing about Rihanna’s daily steps for pay.

    Yes, I’m one of many growing writers who dabble in the world of celebrity journalism in order to not dance in the world of homelessness.

    Like it or not (I tend to have a mixture of both sentiments) people click more on the stars than they do on the stats on their daily lives. Because of this entertainment magazines will shell out millions of dollars for shots of celebrity babies and networks will pay hundreds of thousands for the wedding of a Laker and a woman who’s famous because her sister had a sex tape with Brandy’s brother.

    That is, they used to.

    For a while there despite everyone else suffering celebrity journalism was still soaring via the readers’ need for escapism and our society’s obvious obsession with celebrity.

    But, it looks like rough times have finally met the glossy word of the glossy magazine.

    In “The Brad and Britney Crash,” Daily Beast writer Nicole LaPorte sheds light on how even the celebrity wing of media is suffering.

    She writes:

    More recently, however, the celebrity media bubble has burst—destroyed by the recession, among other factors—leaving hordes of paparazzi, the agencies that employ them, and the magazines and Web sites that showcase their wares, facing a new, very bleak reality.

    The Daily Beast recently quantified just how far the paparazzi market has fallen. Taking a basket of photos sold by the paparazzi agency x17 Inc. during the golden years, 2005 to 2007, we created an index that compared the prices those snapshots fetched then with estimates of what they would garner now. All told, a typical celebrity shot sells for 31 percent less than it did in 2007. The dropoff has been more dramatic at the high end of the market. Six-figure photographs are down more than 50 percent.

    Some might try to spin this as evidence that the recession has killed the celebrity economy. But, those people missed the Kardashian wedding special that aired weeks. People still want their fixes and magazines still want to shove both the A and Z list down our throat…only at a discount. 

    Calls For Job Growth Grow Louder

    With unemployment among blacks topping 15 percent nationally and 20 percent in several states, the N.A.A.C.P. is reportedly ready to put pressure on President Obama to do more to create jobs.

    The N.A.A.C.P. plans to join the A.F.L.-C.I.O. along with the National Council of La Raza to make the case that the president’s $787 billion stimulus program has not been effective enough in dealing with unemployment.

    Just yesterday ABC News reported that the Obama administration slashed 60,000 jobs from its most recent report on the program because outlets submitted “unrealistic data.” Its effectiveness in creating private sector jobs overall has been questioned as well. There’s also debate over how many Americans may owe the IRS in their 2010 tax returns over a discrepancy in how many taxes were withheld from paychecks as a result of a credit imposed from stimulus legislation.

    All of this has spurred the aforementioned groups to call for an increase in spending on schools and roads, in addition to billions of dollars in fiscal relief to state and local governments to forestall more layoffs and a direct government jobs program, “especially in distressed communities facing severe unemployment.”

    Hilary O. Shelton, the N.A.A.C.P.’s senior vice president for advocacy and policy, told the New York Times:

    “It’s time for us to really stoke this issue up. We’re not so much trying to convince him to do something he doesn’t want to do, but urging him to move forward on an issue we have agreement on.”

    The groups also call for tax credits and loans to small and medium businesses to spur private-sector job growth.

    Federal Reserve Chairman and killjoy Ben Bernanke gave a speech yesterday warning of a weak recovery with high unemployment for the foreseeable future. Bernanke blamed banks for slowing the recovery and keeping unemployment high by not opening lines of credit despite receiving hundreds of billions in taxpayer bailouts to open lines of credit.

    How does corporate America respond? Executives at both GE and Bank of America Merrill Lynch both said yesterday that they expect Congress to approve a second economic-stimulus package to help what would otherwise be a slow economic recovery. So the answer to unemployment is déjà vu?

    Hopefully that phrase comes to mind for Nancy Pelosi, who is said to be switching her focus to job creation as we reach the end of the year.

    Whatever action she along with Congress and the administration take, hopefully it’s not simply throwing a bunch of money at large banks that need to be broken up anyway.

    Leave your feedback below and send your own recession stories to therecessiondiaries@gmail.com.

    Guess Who's Shopping More

    If you’re the type of shopper who frequents Nordstrom, Saks, and Macy’s, congratulations – you’re slowly but surely making your way back to the cashier.

    The AP reports on new recent earnings reports from major retailers that suggest that wealthier Americans have begun to trek back to higher end retailers…to actually spend money.

    But, for those of us currently stocking up on Vaseline for Black Friday shopping we’re still not shopping the way we used to.

    However, don’t be completely discouraged by the news. It seems there’s encouraging news on both ends. The AP breaks it down under two categories: spenders and savers.

    If you’re a spender (co-sign a car loan for me, please) they say:

    Luxury department stores like Nordstrom and Saks are starting to get more traffic. Part of the reason is that they've rolled out some merchandise at slightly lower prices, which is helping to keep the affluent from trading down to other stores.

    "If they do spend, it's very scrutinized and it's very value-driven," said luxury retail analyst Robert Burke. "And they want items they can wear multiple places."

    If you’re classified as a saver (no, I’m not co-signing for you) it seems:

    Kohl's, a chain of midrange department stores, said more customers came into its stores in the third quarter and made more purchases, but they're still limiting their spending.

    Its shoppers are on a mission for a set list of items and not straying, CEO Kevin Mansell said.

    "We're not able to convince them to buy that extra thing," he told The Associated Press.

    The rich even bought during the nadir of the Great Depression, so while we’re always told that if the rich are spending then rejoice there’s still no job growth. People in higher tax brackets buying new slacks can only cheer us up so much.

    However, one can’t completely discount any positive sign of a surge in spending. Uh, yay…kinda.

    In any event, which category do you fall under and how have you spending habits changed in recent months?

    Share your shopping stories below and send your own recession stories to therecessiondiaries@gmail.com.

    Also, feel totally free to offer to buy me something. 

    Is All of That New Family Time Souring Relations?

    Despite new claims from Warren Buffett that the worst is over, there’s still much to be miserable over.

    There is rampant unemployment, foreclosures have declined slightly but they’re still higher than they were a year ago, men continue to struggle to find work, the deficit is soaring, gas may reach the price of $4.00 a gallon again, and there are ten new states on the verge of California-like budget disasters.

    For parents, the stress is daunting. For children, it’s apparently even worse. The New York Times published a recent report on how high stress is increasingly being passed on from parent to child.

    They report:

    For many families across the country, the greatest damage inflicted by this recession has not necessarily been financial, but emotional and psychological. Children, especially, have become hidden casualties, often absorbing more than their parents are fully aware of. Several academic studies have linked parental job loss — especially that of fathers — to adverse impacts in areas like school performance and self-esteem.

    “I’ve heard a lot of people who are out of work say it’s kind of been a blessing, that you have more time to spend with your family,” Mr. Bachmuth said. “I love my family and my family comes first, and my family means more than anything to me, but it hasn’t been that way for me.”

    The article pointed to children yanking out their hair, failing in school, and having a strained relationship with one or both parents.

    It would be easy to argue that people should simply stop giving into the superficial and place less emphasis on money and enjoy the added time with family. But when you have bills and you have no clue where your next dollar is coming from following the Huxtable’s guide to family life seems a lot less important. Moreover, for many a career defines who they are. Without anything to do you begin to feel hopeless and lose a sense of yourself and your purpose. All of these factors create a stressful climate that takes its toll on the entire family.

    For those of you currently out of work, or at the very least, making less than you used to, how has it changed the climate in your home? Have the relationships with your children or spouse been strained?

    And though you may have a right to be stressed, is it time for you to get out of your funk and speak candidly about your situation with your children?

    I’d love to hear from you.

    Leave your comments below and send your own recession story to therecessiondiaries@gmail.com.

    For Job Seekers, The Past Is Prologue

    There are nearly 16 million people out of work. According to new stats from the labor department, job seekers now outnumber openings by more than six to one -- the greatest discrepancy since tracking of job openings began.

    With millions unemployed and scarce jobs available those still actively looking for work have to be certain there are no skeletons lying in their respective closets. Thus, more people are opting to legally clear their criminal records.

    The Wall Street Journal reports that after years of civil rights organizations complaining about how young black men are disproportionally screwed over when employers ask about arrests and prior convictions, a growing number of middle-class and blue-collar applicants are facing the same issues as they seek new jobs.

    So of course now that some of our paler and privileged brethren are experiencing these problems suddenly it’s news worth reporting over.

    Via the Journal:

    "This is affecting a whole new group," says Michael Hornung, a defense attorney in Fort Myers, Fla., who charges $1,000 to help clients clear records. "I've had more people come in to talk to me about having their records expunged in the last year than I have had in the previous 13 combined."

    The increase comes as unemployment has risen above 10%, allowing potential employers to be choosier than they have been in decades. More Americans have criminal records now, criminologists say, in part because a generation has come of age since the start of the war on drugs.

    My sarcasm aside, this does pose a problem given that it’s both easier and cheaper for companies to perform extensive background checks.

    So if you have bad credit, a DUI, acted a fool one crazy night in college, or some other criminal lapse in judgment there’s a slight chance something may come back to haunt you. That is, if you lie about it on the application.

    Has anyone out there recently contacted a lawyer to serve as a cleanup crew for your background in search for work? I’d love to hear from you.

    Veterans Need More Than Just A Holiday

    On the day we honor those who have served in the military, let us reflect on the nearly 2,300 men and women who didn’t have to die last year.

    These veteran deaths are not attributed to service in the ongoing conflicts in Iraq or Afghanistan. According to a study released by the Harvard Medical School, these 2,266 represent veterans under the age of 65 who died last year as a result of not having health insurance.

    The Huffington Post reports that these findings prove that uninsured veterans represent a figure this is “more than 14 times the number of deaths (155) suffered by U.S. troops in Afghanistan in 2008, and more than twice as many as have died (911 as of Oct. 31) since the war began in 2001."

    Now is not the time for a veteran to go without proper health insurance, particularly those suffering with declining mental health. The Los Angeles Times highlighted a recent survey from Rand Corp. that finds nearly 20 percent of Iraq and Afghanistan veterans reporting PTSD or depression.

    What’s causing their strife? Outside of the obvious, you can add economic woes to the list of problems – including homelessness, which is on the rise among our veterans. The New York Times reports that almost one-third of adult homeless men are veterans. About 3 in 100 served in Iraq and Afghanistan – and it’s only taken them 18 months to land on the street.

    As a result, politicians like Sen. Kirsten Gillibrand of New York are pitching to New York businesses to hire veterans for a tax break from the federal government in return. The Work Opportunity Tax Credit, which was expanded earlier this as part of the Economy Recovery Plan, seeks to help thousands of veterans returning home from Iraq and Afghanistan find steady employment despite scarce jobs being available.

    In Los Angeles, General Shinseki helped broker a deal between two nonprofit groups to convert two buildings into a housing and treatment facility for veterans. And President Obama has issued an executive order intended to aid veterans find work within the federal government.

    These are all essential steps, but more attention still needs to be brought to the plight of the ex-soldier.

    It’s easy to look back on this day as nothing more than another day off. But as someone who has witnessed people enter the military with great promise only to see them return and become a shell of their former selves I realize just how important it is that we ensure our veterans get the care that they need following their service to the country.

    As cliché-ridden as that sounds, it still sounds a lot better than spotting an ex-soldier living under a freeway or dying too soon over lack of health care or the will to live.

    Why Aren't Our Teens Working Like They Used To?

    I still remember my very first job. I worked in the rides department at the now demolished Six Flags Astroworld. I didn’t work at a real ride per se – I worked on the railroad. It was arguably the most boring attraction at the amusement park. I made 25 cents above minimum wage and thanks to the hot Houston sun, got a tan that led to people constantly walking up to me and speaking Spanish.

    The job taught me one very important lesson about adulthood: Working sucks.

    I hated many of my lazy co-workers, disliked many of the entitlement patrons even more, and realized just how quickly you can go broke after receiving a paycheck. On my second job at another now demolished movie theater – which only lasted a day – I realized that if I’m going to be paid to do a job I hate it had better pay well.

    These are very important life lessons to have and it’s a shame the economy has hindered millions of teens from accumulating such knowledge.

    The Labor Department reports that the unemployment rate for teenagers soared to 27.6%. And according to their statistics, the participation rate – teens who do work – fell to 36.2%. That’s the lowest since record keeping began in 1948.

    Why can’t teenagers find work? It’s on you, sir and ma’am.

    CNN Money says:

    The surge in unemployment among 16 to 19 year-olds comes as the weak economy has forced a growing number of adults to compete for jobs that teens normally fill in industries such as retail and food service.

    That's a big problem for teens, who are generally seen as less qualified than adults because they have fewer years of work experience.

    At the same time, older workers with families and mortgages typically elicit more sympathy from employers than teens, who are seen as mostly interested in pocket money.

    Thus many teens have given up looking for a job altogether. However, we now run the potential of an entire generation disconnected from the employment market. Where will that lead our youth?

    Probably spending a lot of time on MySpace, YouTube, and studying Soulja Boy and Nicki Minaj. If you don’t know who the latter is – hit Google. Then be afraid.

    Leave your feedback below and send your own recession story to therecessiondiaries@gmail.com.

    How La-La Land Is Winning The Fight Against Homelessness

    Downtown Los Angeles has been notorious for being a haven for thousands of the area’s homeless residents. However, having recently relocated to the city and not living that far from downtown I must say that when I venture downtown I don’t see an area overflowing with homeless people. And now, thanks to a new survey conducted by the Los Angeles Homeless Services Authority, I have facts to go with my anecdotal observation.

    Despite California seemingly not having a roll of pennies to its name, the population in LA County has dropped 38% since 2007. The count, conducted over three days in January, has the region’s homeless population at 42, 694, down from 68, 808 in 2007.

    Michael Arnold, executive director of the authority, told the Los Angeles Times: “We know that things are changing. “We know, we can sense, we can feel that there’s a change out there. These numbers provide us with some documentation, that things are really happening in Los Angeles.”

    Is this change rooted in policy or geography? The Times reported:

    In a news release that accompanied the report, the authority's executive director said the drop in overall homeless numbers can be attributed to efforts by the city, county and local service providers to address poverty and homelessness. Those include L.A. County"s $100-million Homeless Prevention Initiative and the city's push for permanent supportive housing.

    The report said the most important change is "a paradigm shift. ... Programs are centered on housing placement of homeless families and individuals and providing the tools and skills they need to stay housed."

    So it’s not simply an issue of area LA homeless residents leaving the metro area via free will or force; the city has made a real effort to reduce the problem. And with the state having obvious financial problems this is quite the achievement.

    Perhaps Minnesota Gov. Tim Pawlenty can take notes from Los Angeles. In 2004 the Republican governor and prospective presidential candidate proposed an ambitious plan to reduce chronic homelessness. However, Pawlenty has since fallen short of that goal – now claiming it’s unrealistic to think things could stay the same given the state of the economy.

    Yet, Los Angeles County has managed to do so.

    Last Tuesday, the Department of Veterans Affairs laid out a five-year goal of curbing the number of homeless veterans, pledging $3.2 billion to an issue that is increasingly affecting those who served in the Iraq and Afghanistan wars.

    And late last week, Sacramento mayor Kevin Johnson announced the city would be shifting its strategy on homelessness – placing greater emphasis on finding permanent housing than providing emergency shelter beds.

    Judging from the results of Los Angeles County, perhaps other mayors need to join Mayor Johnson in following LA’s lead.

    Leave your feedback below and send your own recession story to therecessiondiaries@gmail.com.

    Unemployment Tops 10 Percent, Highest Since 1983

    For the first time in 26 years, unemployment has officially topped over 10 percent.

    The Labor Department said Friday that the economy shed a net total of 190,000 jobs in October, less than the revised 219,000 lost in September. August job losses were also downgraded, shifting initial figures at 201,000 to 154,000.

    Yet despite these numbers actually signaling a sharp decline from the huge losses suffered two years ago, nearly 16 million people still find themselves out of work. And if you counted those who work part-time jobs or have stopped searching for work altogether, the unemployment rate would be adjusted to 17.5 percent.

    All of this follows news that the recession has seemingly ended after word that the economy grew at a modest 3.5 percent. But as Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co explained to Air America, “You need explosive growth to take the unemployment rate down.”

    High employment and sharp declines in consumer spending will no doubt impede any significant recovery of the U.S. economy.

    Will this spur a louder call for a second stimulus package? It’s likely, though there is a growing concern as to how effective the first stimulus bill has truly been in sparing and creating new jobs.

    As the New York Times reports:

    Last week the Obama administration released reports from more than 130,000 recipients of stimulus money in which they claimed to have saved or created more than 640,000 jobs, but a review of those reports shows that some are simply wrong, while others contain apparently subjective estimates.

    A spokesman for Toro said the 50-job figure was not accurate, making it one of a number of reports with apparent errors. In many other cases, though, claims of jobs created are simply judgment calls, often by recipients trying to follow complex federal guidelines.

    Ultimately, the fact remains that we are losing far fewer jobs than we were months ago and this is a positive signal in the economy’s recovery. However, in the meantime many questions linger.

    How long will it take to create jobs? How much longer can the government cover the cost of the unemployment without adding even more significant debt? And one long-term question one hopes will be answered once the economy bounces back: Just how many jobs did we really lose during Bush’s presidency? The answer will seal the fate of what looks to be his place as the worst president in U.S. history.

    In the meantime, I’d love to hear your stories on how you have coped with job losses in the recession? How have you managed? How has your search for a new job gone? Are you still hopeful?

    Please submit your recession stories to therecessiondiaries@gmail.com.