Mr. Goldstein’s is quiet likely to be in a different role compared to the others who were his predecessors. Mr. Geithner has already brought in his team of warriors to combat a lot of financial issues at hand in the United States. Some of the examples for the same could be termed as the bail out that was issued for $700, the initiatives around health care and towards the development of the indigenous small businesses. The experiences of Mr. Goldstein is quiet likely to come in very handy for the financial advisory as the United States has a lot of investments in the financial sectors, viz. banks and the insurance companies.

Mr. Goldstein’s nomination is almost confirmed by Wednesday but one thing that we are not quiet sure of is the time line of his confirmation. On the other hand there are other nominees who awaits their confirmation too and that would include Lael Brainard. I think it would be appropriate here to tell you that Mr. Lael Brainard is Mr. Geithner’s nomination for the office of the undersecretary for the international financial matters of the United States.

Lawmaker, to an extent remains skeptical, about President Obama’s proposal of reshaping the US economy in to a systemic-risk regulator, over the entire financial system. There are also plans to recreate financial regulators for consumer protection. This is something, which was not in force during the past two decades on the faulty financial products like the mortgages.

Now Mr. Bernanke has a different approach than the administration. He suggests of writing a mandate in the Federal Reserve Act that should circle round the customer protection, along with full scale reemployment and price stability. He also suggested that the Chairman should get in an annual report to the Congress on the consumer protection front too, like is being done with the monetary policy. Though the term for Mr. Bernanke would end in Jan 2010, and would require the Presidents nomination for another one, but his proposals were well greeted by the panel.

Mr. Bernanke expresses concern about the current situation and expects his suggested reforms would strengthen the addressing of the legitimate concerns about the Fed’s long term commitment. He expressed further worries about the congressional audits on the monetary policy of the central bank.

With the independence at risk of the Fed, Bernanke found surprising support from some of the corners. Some lawmakers were seen to have continued with their questions about the unorthodox intervention of the Fed in the US economy. While this was a picture on the other hand some of the senators were eager on the further course of action about the central bank, and that was majorly related to the loans that were to be extended to the small businesses and the so troubled commercial real estate and the mortgage sector.

The governor and other democratic leaders said they were not left with much choice than cutting down on the state’s health budget. As a part of the budget package the credit rating agencies would also be stopping the credit rating agencies from any further down rating of the state. This gap closing plan is plan is quiet likely to play a crucial role in the ability of people to borrow money. As that would help to, continue monetary pump-ins, into the states economy.

An analyst from the Standard and Poor’s, is of the opinion that California is presently rated the lowest amongst the 50 states, and the state might further be downgraded. The reason being that the revenue forecast is a bit too optimistic and the fixes used are very unconventional.

The California economy is a $26 billion issue from a $12 trillion US economy and not all the economists are pessimistic about the long term impacts, those would be caused by the cost control. They are of the opinion that this situation is bad but not actually a disaster. According to Mr. Noll a Stanford economist this budget is a quick fix and this would only push the problems to the next year. For example the pay checks of the Government employees being pushed to the July 2010 from June 2010.

In the short run, some struggling cities and counties may witness hard times, due to the lay off of the teachers and the pay chop offs for the government employees. Mary Canoy a lady, who works on a degree at Cypress College and is a mother of three, expects a drop in her pay check again and that would put her in financial hardship. Leaving her no choice other than, selling her car. She terms this situation as “Poverty’.

Whether you sign up for credit card rewards that offer you discounted petrol, discounted grocery shopping, discounts on certain stores or flights and accommodation. In the long run you will save yourself money.Just make sure you make the payments when they are due and you will never have any problems. In today’s society Credit Card Companies offer you added security with your cards and request that you add a pin to your card to protect yourself and your hard earned money. Credit Cards save you time and make things a lot more convenient when paying for shopping, concert tickets, airline tickets and accommodation No need to carry around wads of cash to pay for things. So if you are good with budgeting and know your spending limits, forget about the doom and gloom new of The Global Financial Crisis leave all that up to the politicians and sign up for a Credit Card you just need to choose the one that is right for you.

The car industry is a great indicator of judging the strength of the economy. When times are prosperous then cars will sell, when times are bad cars do not sell, it is that simple. At the moment major car manufactures are struggling to stay afloat, if they start to drown then things are going to get a lot worse. Another guide for the economy is the local meat store, if you speak to your butcher and ask them what types of meats they are selling this can be related to how the economy is doing. For example is times of a strong economy a butcher will sell more high quality steaks such as t-bones and sirloins, however when the economy is going bad the sales of these high priced meats goes down and people opt to buy cheaper lower grade meats.

The point is the world has a long way to go in order to triumph in this financial game. We will be working behind the eight ball for some time to come. There are many opinions on how long it will take before we reach the light and the end of the tunnel, some say 3 years others say 5 to 10 years. But one thing is for sure that for the foreseeable future there will not be too many people driving new cards and buying top of the line steaks.

Source: Wall Street Journal

Editorial Notes: Retirees in Australia are feeling the same fears as their counterparts in the United States. The full effects of the credit crunch on superannuation will not be seen for years to come. On top of this is the fall in property prices, rising costs of living and the steep drop in the stock market. What are your concerns for the future and retirement? Do you think you will have enough money to retire with? What are some of the financial losses Australians have felt over the past few months? We would like to hear your comments about how the credit crisis has effected your savings and plans on retirement.
Credit

Source: Wall Street Journal

Editorial Notes
This entry shows how the big banks in the United States are jacking up there fees and charges in order to compensate for the international credit crisis. Could this trend occur in Australia? If so what do you think about this tactic by the big American Banks?

source -Wall Street journal

The above shows how the credit crisis in America is effecting the average person. What do you think about the banks lowering credit card limits? How would this effect you if Australian banks lowered your credit card limit? Would this further the struggles of your day to day living or is this a step in the right direction in getting over the world credit crisis?