Miscellaneous

The Weekend Wrap: Financial Education, Student Loans, Recovery, Jobs, and a Crypto IPO

April 10, 2021 By Max Erkiletian Leave a Comment

With all the emphasis on stimulus checks, you might have missed some of the personal financial changes in the American Recover Plan. You might also want to know where the job market is heading; what is planned for student loan debt; the push for financial education; and a first in an IPO.

Efforts to Require Financial Education Rising

You can see Americans at international sporting events and political gatherings shouting: “U.S.A, U.S.A.” and “We’re number one!” However, you don’t see proud parents and grandparents outside schools chanting, “We’re number 14!”

America’s Financial Literacy Declining

Fourteen is significant because that is where the nation ranks globally in financial literacy. In fact, only 57 percent of Americans are financially literate, according to a Standard & Poor’s Survey.

American’s lack of financial knowledge has spurred an increasing number of states to mandate financial education in schools. Today, 21 states require personal finance to be taught in high school. That is an increase of four states since 2018. Florida dropped its financial education requirement but retained a personal finance elective.

To make matters worse, financial literacy is declining. Only 34 percent of Americans correctly answered four out of five personal finance questions in a 2018 Financial Industry Regulatory Authority (FINRA) survey. That is down eight percent from 2009.

Economic Divide

Students from low-income families suffer the most. The Council for Economic Education is a non-profit that promotes financial education. It found that in states without mandatory financial education, poor students had much less access to financial information than wealthier students.

Research from a University of Montana study indicates students who have had financial education in high school make better financial decisions. That research shows those students incur less educational and personal debt.

Student Loan Forgiveness

Up next, we are going to look at some of the lesser-known elements of the relief plan enacted last month. But first, let’s take a look at provisions for something that was left out of the law.

Student loan forgiveness was not included in the American Rescue Plan. However, section 9675 of the law makes student loan forgiveness tax-free from 2021 to 2025.

That is great, you say. But if my student loan can not be forgiven, what’s the big deal?

The big deal is this. Making student loan forgiveness tax-free is the first step to obtaining loan forgiveness. It is the horse that must come before the cart. Now that it is in place, what’s next?

Sunday’s edition of Saving Advice will examine the latest in the push for Student Loan Forgiveness.

More Than a Stimulus Check

Everyone knows that the American Rescue Plan Act signed into law by President Joe Biden last month gave most Americans a stimulus check. But you may not know some of the other aid it offers. Here is a brief rundown.

Child Tax Credit Increase

The main takeaway here is that this tax credit has been increased from $2,000 to $3,600 for each child under six and to $3,000 for each child between six and 18. The benefit is available for couples making under $150,000 a year or single parents making under $112,500.

Another significant change is that the child tax credit will be sent directly to families on a monthly basis. Previously, parents had to wait until their tax refund came through to get the money.

“This change will allow struggling families to receive financial assistance now,” according to the treasury department, “rather than waiting until the 2022 tax filing season to receive the Child Tax Credit benefit.”

Schools and Childcare Block Grants

The law designates $130 billion to reduce class sizes, improve ventilation, purchase personal protection equipment, and other measures to help schools K-12 open safely. Another $40 billion is set aside for childcare providers and $1 billion for Head Start.

College students will have access to $40 billion in emergency financial aid.

Homeowners and Renters

The moratorium on evictions and foreclosure ended March 31. The law does not extend that ban. However, it does provide funds to help you keep a roof over your head and keep the lights on.

The law provides $10 billion in aid to homeowners and another $21.6 billion for renters.

You can access funds through your state, territory, or tribal government to make delinquent mortgage payments. State, territorial and local governments will also handle the money targeted for rent and utility payments.

Unemployment and COBRA

Unemployment benefits of $300 a month will be paid through Sept. 6, 2021. That is $100 less than originally proposed. However, a surprise tax benefit makes the $300 plan more advantageous.

The first $10,200 in unemployment is paid tax-free. In addition, if you paid taxes on unemployment benefits in 2020 you will be able to recover those funds when you file your 2020 tax return.

COBRA gets a full subsidy. That allows you to stay on your employer’s health plan through the end of September.

Food Aid

The Supplemental Nutrition Assistance Program (SNAP) gets an increase through Sept. 30. Just over $2 billion will go toward nutrition assistance. Another $490 million will go to increase cash vouchers in the Women, Infants, and Children (WIC) program.

Aid for Businesses

Businesses get $7.25 billion to cover payroll and other expenses as part of a boost in the Payroll Protection Plan (PPP). One change is that non-profits are now included in PPP.

Restaurants and bars get extra help. $25 billion is provided to cover payroll, utilities, rents, and other operating expenses.

Public Health and Safety

You may not see it in your personal finances. But state and local governments have incurred more expenses as a result of the pandemic. They have also lost tax revenue.

To help, the law allocates $350 billion dollars to state, territorial, and tribal governments.

“In addition to helping these governments address the revenue losses they have experienced as a result of the crisis,” according to the treasury department, “it will help them cover the costs incurred due to responding to the public health emergency and provide support for a recovery.”

The New Job Market

With Unemployment dropping to 6 percent, you may be tuning up your resume. New jobs are opening whether you are reentering the workforce or you are making a career change.

The post-COVID employment picture will look a little different than it did before. For instance, most economists were surprised that 110,000 new construction positions were part of the 916,000 jobs added to the economy last month.

In addition, the Biden Administration has proposed a massive infrastructure plan that could add all sorts of jobs in various fields.

Health, Tech, and Green

Most employment for 2021 and beyond will be in technical, medical, and green jobs, according to the U. S. Department of Labor. Among the top ten jobs, Labor includes in its list of the fastest-growing occupations, six or in the health field. The other four are wind turbine service technicians, solar installers, statisticians, and information security analysts.

A serious shortage of skills in fast-growing fields was emerging prior to the pandemic according to an American Action Forum (AAF) report. As the economy reopens, that shortage will rise again.

“This study estimates that, over the next decade, employers in nearly every state will face significant shortages both of workers with an associate degree or some college,” wrote AAF analysis Tom Lee in 2019.

FYI on IPO for Coinbase

Mark your calendar for April 14. That day history will be made.

Coinbase Global, the largest cryptocurrency exchange in the United States, will go public next Wednesday. It is the first major crypto company to launch an IPO.

Trading on the Nasdaq, Bitcoin will be listed under the symbol COIN. However, the company will not follow the traditional IPO route. Instead, current investors will convert 114.9 million shares for offer to the public. That practice is known as a direct offering.

We will follow up on Coinbase in next weeks The Wrap

Coinbase Offering Price

Coinbase plans to announce its reference or opening price the day before it goes public.

The company released a flush earnings report Tuesday. It announced 2021 first-quarter earnings exceeded earnings for all of 2020. Revenue of $1.8 billion produced earnings of between $730 million and $800 million in the first three months of the year, according to the Coinbase report.

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3 Money Rules I Live By

April 7, 2021 By Rachel Slifka Leave a Comment

There’s a ton of financial advice out there. How do you know what will actually work for you? As a personal finance geek, I’ve jumped on board and tried just about every financial trend and pieces of wisdom. Some tips worked for me, while a lot didn’t. But when it’s all said and done, here are the 3 money rules I live by, no matter what.

Money Rule 1: Check in on your finances daily

First on my list of money rules – I check in on my finances daily. I set this rule for myself when I was a recent college grad. I wasn’t earning much money, and I carried several thousand dollars of student loans. While it was definitely tempting to put my head in the sand and ignore my financial situation, I decided to face it head on. No matter how ugly my finances looked, I made it a point to check in on my accounts daily.

This step may seem small, but it was single handedly the best thing I have ever done for my finances. By checking in daily, I got a real-time snapshot of exactly where I’m sitting. That helped drive my spending decisions during the day. After all, that $5 latte loses its appeal when you see how else you could use that money.

Checking in daily also kept me motivated towards my financial goals. Once I started making a tiny bit o progress in paying off my student loan debt, my motivation increased. Seeing progress is key!

Money Rule 2: Never carry a credit card balance

Fortunately, I implemented this rule in my life early enough to never have had credit card debt. I am an avid credit card user. I use the points to pay for travel and vacations. However, I made it a point to never carry a balance on my credit cards, and I’m glad I did.

Credit cards have insanely high interest rates, making it extremely difficult to get out of debt. Instead of relying on credit cards in an emergency, I worked to build my emergency fund. Even when I was in student loan debt, I kept my emergency fund. Even a small, $500 emergency fund can save you when you need it.

Money Rule 3: Pay cash for large purchases

Out of all my money rules, this is likely the most debatable, but I always pay cash for large purchases. Most large purchases, such as cars, furniture, or home improvement expenses will allow you some sort of financing option. The interest rate, if you choose to finance, is typically pretty low here, so most people choose to finances versus pay cash for these types of large expenses.

So why do I always pay cash? The primary reason is I simply don’t like owing anyone anything. Once I paid off my student loans, the only debt I had was my mortgage. It feels liberating to own something outright and not have to worry about making payments on it.

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Secondly, I can use cash as a bargaining tool. For instance, I can walk into furniture with a $2,000 budget and see a couch for sale for $2300. By having cash, I can make quick decisions and offers. Most of the time, I can get that $2300 couch for $2000 simply because I can pay in cash and leave today with the item. Not everyone will bite at a cash deal, but it’s fun to use this tactic to try to negotiate the best price!

Chip Shortage Reduces New Car Production and Sends Used Car Prices Higher

April 4, 2021 By Max Erkiletian Leave a Comment

With Spring in the air and the lure of the open road, you may be thinking of buying a new car. If you are, be sure to buckle up — you are in for a rough financial ride.

A worldwide shortage of semiconductor chips is playing havoc with the manufacture of new vehicles across all brands. More and more automotive plants are closing temporarily due to the shortage.

Used Car Prices Rising

“The auto manufacturers are in a situation where they can’t fill production to capacity,” George Peterson, President of automotive research and consulting firm AutoPacifc told Saving Advice. “At the same time, consumer demand is spiking. So there is a crisis in the supply chain. That means many consumers will move to the used car market. Because of the increased demand, consumers will pay more.”

Used car prices are already moving upward. In the first half of March, wholesale used car prices jumped 3.74 percent, according to the Manheim Used Vehicle Index.

“The latest trends in the key indicators suggest used vehicle values are likely to continue to see appreciation in the days and weeks ahead,” according to Manheim. Leading the way in used vehicle sales are pickup trucks.

New Car Supply

Most dealerships maintain a couple of month’s supply of all current year models. So inventory would not be affected immediately. However, a Wall Street Journal survey found dealers are experiencing inventory reductions. The uptick in sales that usually occurs in Spring and Summer will put more pressure on the supply line.

Meanwhile, manufacturers may be forced to reduce or halt the production of some models in favor of more popular ones, according to Peterson. In that case, high-profit vehicles, such as pickup trucks and SUVs will be prioritized.

Car and Driver has predicted that one million fewer cars will be manufactured in the first quarter of 2021. Already, manufacturers have announced reductions totaling 680,350. The result, according to the magazine, will be a loss of $61 billion dollars to the industry worldwide.

History Repeats Itself

We have seen this before, says Peterson. In 2020, many automotive plants closed for various periods of time. The reason for the closures then was COVID-19. Chip producers decreased production and shifted supply to other customers. When auto production ramped up again, there were fewer chips available.

Along with the shortage, the automobile industry has increased its use of semiconductor chips. As many as 100 can be found in some vehicles. They are used in everything from Bluetooth, engine management systems, road navigation, and collision detection systems.

That makes cars more expensive. Semiconductors make up around forty percent of the cost of a new car, according to consulting firm Deloitte.

Possible Surge in Used Lease Cars

With the reduction in new car production, as Peterson says, consumers are more likely to turn to used cars. Fortunately, there may be a ready supply.

“Top of the line car sales three years ago totaled about 16 to 17 million,” says Peterson. “About 40 to 50 percent of those cars were lease cars and they are coming off lease, so there is a good supply of quality used cars coming on to the market.”

Some Manufacturers Reducing Chips

“GM is shipping some of their trucks without components that aren’t essential to safety or operation,” says Peterson.

General Motors decided to ship some Chevy Silverados and GMC Sierras without a nonessential chip. The decision results in a drop of one gallon per mile in fuel economy.

“When you’re trying to sell vehicles,” says Peterson, “fuel efficiency becomes less important.”

Is There an End in Sight?

No one has set a date for when they see the chip shortage ending and automobile production returning to normal.

Manufacturers are scrambling for chips and chip producers are expanding operations. But building a new plant and getting it into production takes considerable time.

In the meantime, the semiconductor industry will face more strain in the future. Automobile companies are continually creating more tech-heavy vehicles. With the push to electric vehicles leading the way.

A Government Call to Arms

President Joe Biden has responded to the chip crisis with a call for money and action.

Wednesday, Biden called on Congress to authorize $37 billion to stimulate semiconductor chip manufacturing in the United States. In addition, the president signed an executive order to address the shortage.

“I’m directing senior officials in my administration to work with industry leaders to identify solutions to the semiconductor shortfall,” Biden said on Wednesday. “Congress has authorized a bill but they need $37 billion to make sure that we have this capacity. I’ll push for that as well.”

Biden was referring to the $37 billion needed to fund provisions of the National Defence Authorization Act. The law is aimed at boosting semiconductor chip manufacturing in the United States. However, Congress is yet to fund the legislation.

The executive order kicks off a 100-day review of supply chains for semiconductor chips as well as electric car batteries, rare earth minerals, and pharmaceuticals.

The president met with a bipartisan group of lawmakers Wednesday, before his televised remarks.

American semiconductor companies account for 47 percent of chip sales globally. However, only about 12 percent of chip production is done in the United States, according to the Semiconductor Industry Association.

Conclusion

The semiconductor chip shortage will be with us for an indefinite period of time. Scarcity drives prices higher. As a result, vehicles and many other products that use chips will cost more until the shortfall is resolved.

If there is a silver lining, it looks like the White House, Congress and the semiconductor industry are on the same page.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more.

Weekly Wrap: Vaccine Passport Coming As Scams, Car Prices, IPOs All Trend Up

April 3, 2021 By Max Erkiletian Leave a Comment

One old dirty trick is still with us. However, other financial matters are changing quickly. Check out this week’s financial wrap.

Tax and Social Security Scammers Add to Their Bag of Tricks

The phone rings. Caller ID shows a Washington, D.C. number. You answer and an official-sounding recording says you are in trouble with the Internal Revenue Service (IRS). Or, your social security number has been used in criminal activity. You need to respond quickly.

You are on your way to losing money to a scam artist if you obey the instructions.

“Consumers reported losing more than $3.3 billion to fraud in 2020, up from $1.8 billion in 2019,” states a report from the Federal Trade Commission. “Nearly $1.2 billion of losses reported last year were due to imposter scams, while online shopping accounted for about $246 million in reported losses from consumers.”

Expanding Fraud Opportunities

The IRS and social security scams have been around for years. But now the same techniques are being used to take advantage of fraud related to COVID-19.

The crimes include stealing unemployment benefits, stimulus checks, fake COVID treatments, and bogus charities.

Formula for Fraud

The tried and true template for all these frauds is the IRS phone fraud. Although it can and has been carried out with texts and emails.

With IRS phone fraud, you get a call like the one detailed above. Fear is a big part of the scheme’s success.

The call seems official because it comes from a Washington, D. C. number. However, scammers spoof calls. That is where false information is used to make the call appear to come from a legitimate source. Some phone providers even offer spoofing services that work like prepaid calling cards.

The Call Is Not From the Government

“Government agencies like the Internal Revenue Service (IRS) or the Social Security Administration (SSA) won’t call, text, or email you out of the blue to demand payment right away,” writes FTC Attorney Emily Wu in an agency blog post.

The IRS Confirms Wu’s Assertion

“The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information,” the service says.

To help consumers, the IRS has posted a list of current scams.

To report a scam call, email or text, contact the FTC.

Here is how the FTC suggests you handle a government imposter call.

Here’s Why Your Next Car (New or Used) Will Cost More

You may have heard semiconductor chips are in short supply. The chip drought will short circuit any ideas you had about getting a bargain on your next car.

Semiconductors make up around forty percent of the cost of a new car, according to consulting firm Deloitte. Without them, modern automobiles can not function properly. Auto manufacturers around the world have slowed production as a result of the shortage. That means fewer new cars are coming to market.

Check out Saving Advice’s look into the semiconductor shortage and the impact it will have on your wallet. Our special cover will be available in Sunday’s edition.

IPOs Continue To Boom, SPACs Bust As Opportunity Opens for Small Investors

The surge in IPOs that began last year has charged into 2021 and is rising. Meanwhile, small investors are able to join the stampede.

Companies raised $174 billion on 494 offerings in 2020, according to FactSet, a financial data and software company.

“In aggregate, IPOs raised $174 billion in 2020, a 150% increase over 2019,” according to FactSet.

The number of companies raising over $1 billion set a record at 28. DoorDash and Airbnb both exceeding $3 billion.

IPO Market Off to a Strong Start in 2021

This year is shaping up as an IPO tsunami. Through mid-March, 302 IPOs have raised 102.3 billion, according to Dealogic.

SPACs Go Splat

The only sour note is the recent downturn in Special Purpose Acquisition Companies (SPAC).

SPACs are often called “blank check” companies. They are shell companies. These companies raise money through a stock offering to invest in other companies.

SPACs joined in the IPO surge last year. They now have an estimated $1 trillion in buying power, according to Business Insider. However, average SPAC returns are minus 34 percent between January 2019 and June 2020. Many are trading below their IPO price. Consequently, the market seems to be cooling.

Democratization

IPOs have long been reserved for wealthy and institutional investors. However, SoFi is trying to change that. The investment company is offering IPOs to clients with $3,000 or more in their account. Robinhood is planning to do something similar.

Vaccine Passports Are Coming

Soon, you may be asked to show your passport when you attend public events. No, not that passport. The one showing you have been vaccinated against COVID-19.

The Biden Administration is considering “vaccine passports”. These credentials would be displayed on free smartphone apps or printed.

The White House, various tech companies, local governments, and universities in the United States are trying to develop a credentials plan.

Global Effort

Internationally, the World Health Organization (WHO) is exploring vaccination passport ideas.

Several airlines are testing a digital travel pass developed by the International Air Transportation Association.

The European Commission is contemplating a “digital green certificate”. The voucher would be for travel within the European Union. It would be proof of vaccination, a negative COVID test, or a previous infection.

Everybody Has a Plan

Countries and organizations are researching or have announced plans to implement vaccination passports.

Israel is developing a “green pass” to travel. In Demark, a “Coronapas” will be required to enter hair salons, movie theaters, and restaurants, according to the BBC. Meanwhile, Sweden, Estonia, and Greece are also considering issuing vaccine passports.

Standardization

The potential for chaos is great.

The Federal Health IT Coordinating Council cited the need for one coordinated plan to avoid confusion.

The council stressed that “A chaotic and ineffective vaccine credential approach could hamper our pandemic response,” The Washington Post reported.

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Weekly Wrap: Gas, Home Remodeling, Travel, GameStop, And FedCoin

March 27, 2021 By Max Erkiletian Leave a Comment

Gas prices, consumer spending on home remodeling, and travel are on the rise while GameStop continues its wild ride and the United States moves closer to issuing a digital currency.

Forecast For Gas Prices Higher

From February to mid-March, gas prices across the United States rose 40 cents per gallon to $2.86. Though prices leveled off this week to an average of $2.88 a gallon, analysts seem more price increases ahead.

“A dip in demand along with a simultaneous increase in supply and refinery utilization has contributed to slower movement in gas price increases,” said Jeanette McGee, AAA spokesperson. “On the week, 32 states had increases of only 3 cents or less. This does not mean gas prices have hit their peak, but is a positive sign for consumers.”

Supply and Demand

The prime mover in the price of gas at the pump is almost always the price of oil and consumer demand.

In 2020 demand plummeted as the pandemic raged. Oil production was exceeding demand by 3 million barrels a day, according to Forbes. High supply meets reduced demand equals lower prices.

All that changed earlier this month when OPEC+ announced at its March 4 meeting that the cartel is reducing oil production. Saudi Arabia alone has cut one million barrels of oil per day (BOPD). A barrel equals 42 U. S. gallons.

A Storm in Texas

Prior to OPEC+’s actions, U. S. refinery utilization dropped to 56 percent. That was a result in small part due to reduced demand. However, the major cause was the massive storm that hit Texas in February.

Even with the refineries recovering, experts see gas prices being elevated for the near term.

“The sustained OPEC+ production curtailment through April suggests that supply will remain constrained in the near term, even as demand continues to increase,” according to the U. S. Energy Information Administration (EIA). “As a result, EIA expects that further inventory withdrawals to meet rising crude oil demand will keep crude oil prices elevated through at least the end of April.”

Higher Prices Long-Term

Writing in Oilprice.com, David Messler, who worked in oilfields on six continents, also sees oil prices leveling off.

“For gasoline, the primary motor fuel used in the U.S. moves gradually higher in the second half of 2021, and then moderates in 2022, just below the levels of 2019,” Messler wrote. However, his long-term view is less optimistic for consumers.

“Long-term we are expecting a spike in crude prices as shrinking supplies fail to meet rising demand,” wrote Messler. If he is right, that means you will be paying more at the pump down the road.

Travel Rebounding

Around the world, people are traveling and planning to travel for leisure again. In response, hotels, airlines, and cruise ships are cutting prices, expanded bookings, and relaxing cancellation policies.

The World Trade Organization, International Air Transportation Association, and hospitality research firm STR all agree that 2020 was the worst year in the travel business.

However, 2021 and beyond are looking much better.

Booking Increasing

According to a recent report by Tripadvisor, bookings for domestic travel are on the rise now with international travel picking up steam from May on.

The travel platform noted that about 70 percent of leisure bookings the first week in January were for domestic travel. May through August are the most popular months. Eighty percent of Americans surveyed planned at least one overnight leisure trip this year. About one-third said they were planning three or more domestic trips in 2021.

Vaccinations Fuel Optimism

The rollout of COVID-19 vaccines has been cited as the main reason people are traveling again for pleasure. Seventy-seven percent of those surveyed globally say they will travel internationally if they get the vaccine. In the U. S. the figure is 80 percent.

“Consumer appetite for travel is as strong as it has been since the start of the pandemic and, as our data shows, many people are already actively planning their next big trip – even for trips more than four months out,” said Shibani Walia, senior research analyst, Tripadvisor.

Remodeling Boom Building

Not all business suffers in a pandemic. Delivery companies are prospering with FedX and UPS posting higher earnings. Amazon and Walmart have also increased profits. And there is a boom in the remodeling industry.

The market for new homes has tightened during the pandemic. Many people found themselves priced out. They turned to remodeling in an effort to:

Make their homes more livable.
Accommodate remote work
Include other family members

Harvard University’s Center for Housing Studies, through its Lending Indicator of Remodeling Activity (LIRA), tracks home improvement trends.

Spending Up This Year

LIRA spotted the increase in home remodeling in 2020 when spending on such projects reached $339 billion. The boom is projected to continue in 2021 to $352 billion, according to LIRA.

For a detailed examination of the remodeling boom and its impact on you, your wallet, and how you live, read Monday’s article in Saving Advice.

GameStop Won’t Stop

This was the week veteran Wall Street value traders were expecting GameStop to get its comeuppance. Instead, it got renewed support and saw a continued changing of the guard.

After dipping 34 percent by the close of Wednesday, GameStop stock made up its losses Thursday. Investors started buying again at around $125 a share. The price rose 53 percent.

GameStop closed Friday at $178.84 a share, down about $5 a share.

Brutal Beginning

GameStop stock was beaten down the first three days of the week on expectations that Wednesday’s earnings report would be dismal.

Analysts expected GameStop to hit $1.35 per share on revenue of $2.21 billion. Instead, it earned $1.34 per share on revenue of $2.12 billion.

Shift to E-Commerce

One bright spot was the company’s announcement that e-commerce sales increased 175 percent last quarter. That accounted for one-third of the company’s revenue for that period.

GameStop has been shifting emphasis to e-commerce in the last five months. To facilitate that pivot, the company recently hired Jenna Owens as its new chief operating officer. She is a former Amazon and Google executive.

More good news came for GameStop Thursday. It was picked as a buy recommendation by short-term stock analyst firm Zacks Rank.

FedCoin Getting More Attention

The Federal Reserve’s interest in developing its own cryptocurrency is picking up steam.

Lael Brainard, Federal Reserve Board Governor, told a conference at the Stanford Graduate School of Business the central bank is currently exploring all aspects of digital currency,

The Fed is not alone in its interest in cryptocurrencies. Most central banks around the world are either researching or creating their own digital currencies, according to a survey by the Bank of International Settlements.

The Facebook Threat

Increasing the interest of the Fed and other central banks is Facebook’s proposal to introduce its Libra digital coin as a new global settlement currency. The idea is to back the Libra with existing monetary reserves, primarily the dollar.

It’s the idea that Libra could replace national currencies in international commerce that has drawn the interest of central banks. The fear is that a private company with that sort of monetary control could have political leverage over nations.

There Are Risks

Not referring to Facebook or Libra, Brainard noted risks in private companies having too much influence.

“Some of the new players are outside the financial system’s regulatory guardrails, and their new currencies could pose challenges in areas such as illicit finance, privacy, financial stability, and monetary policy transmission,” Brainard told the Stanford conference.

Bottom Line

It’s early and there is still a long way to go, but an upswing in travel and single-family renovations are positive economic signs. High gas prices look like they are here for a while. GameStop continues its gyrations and U. S. national cryptocurrency seems on the way.

How To Make Your Pandemic Lay-off a Plus

March 22, 2021 By Max Erkiletian Leave a Comment

If you are one of the 40 million Americans laid off during the pandemic, you know what a blow that is to your finances and self-esteem. But it may also be one of the best things to ever happen to you. You can make your pandemic lay-off a plus.

You Are Stronger Now

“What doesn’t kill you makes you stronger,” is an old saying. It applies to fighting through a COVID layoff.

You are stronger now than you were before COVID-19 because you’ve had to be. It is important to remember that. The pandemic is fading, the economy rebounding, and the job market reopening. Now is the time to make your pandemic lay-off a plus.

Now Is Your Time

There are two important things to consider if you have been laid-off.

The first is time. Now you have more of it. Americans devote 90,000 hours of their lifetimes to work. Taking a few of those hours to get a perspective on your life and career is invaluable.

Secondly, is the opportunity to take control of your career path. Because you have only worked in one field, you may feel your options are limited. However, If you want to change your career, now may be the best time to do it.

Expand Your Career Choices

But what if you can not figure out what you really want to do the rest of your life? Daydream.

Author Neil Gaiman has said most of his ideas come from letting his mind wander.

Think about what gives you the most joy and fulfillment. Let that ruminate in your thoughts and see what comes out.

A New Economy With New Opportunities

The work environment and some jobs have changed during the pandemic.

Ambika Nigam is the founder of Zeit, a platform to help people “pivot” from one career to another. Working with his clients, Nigam told Fortune Magazine he has learned the pandemic has brought about several changes in employment.

Jobseekers and employers are looking to connect the job/employee to a mutual purpose.
Geography is no longer a barrier to employment. Even before the pandemic, some employers in high-cost areas were encouraging remote work. Now it is almost the norm in many industries.
Adaptability has become more important. Before the pandemic companies looked for a more focused mindset. Now they are looking for people who are flexible in their thinking.
Job candidates with a variety of skills and knowledge are more sought after. If you have trained across several disciplines, you may have greater value.

Marketing Yourself for the New Job Market

Changing or continuing your current career path will require personal marketing. Here are a few suggestions.

“Pace yourself,” says Meredith Stoddard, Vice President of Life Events Planning at Fidelity Investments. “Decide how many hours a day you’ll dedicate to job searches, networking, interviewing, and self-discovery.”
You want to show a prospective employer you have kept up or added skills. Thanks to online learning, you can take courses and attend free webinars. Many classes offer free certification.
Upgrade your resume and Linkedin profile. Searching Linkedin contacts may lead to an interview.
Social networking can also help. Both Linkedin and Facebook host professional groups that may present job opportunities.
Work from home while you look for permanent employment. Some job boards that try to screen for legitimate work include FlexJobs.com; Remote.co, and WAHVE.com.
You can also sign-up to these Freelance Marketplaces

Platforms	Best For:
Fiverr	Finding Freelancers
Bark	Finding Unique Freelancers
Appjobs	Gig Economy Professionals

Conclusion

Taking care of yourself is also important. Get outside every day. Stay connected to family and friends. View this time as your new opportunity to plan the future you want.

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