Big Oil has always been a popular whipping post for many of the economic ills that have affected this country over the years. But what has happened over the last one year has not been their fault, sure, they made most of the easy money that was available, but then who didn’t? True, the oil companies made huge profits when they could, but this was the American way and while we grumbled at the prices of gas, that was about all we did.

Today, we have the lowest oil prices we have seen for years. And they look like they are going to stay that way for some time. There’s nothing the oil companies can do about it. Put up the prices even by one cent and the demand will drop in a way that will offset any gains they could have made from the increase.

In a way, low oil prices are not good for us. The reason the prices are low is because of a world wide recession, the demand has fallen to level far below the supply. Producers around the world have had to cut back on production to try and keep oil prices at some reasonable level. I guess you could say the current prices of gas are reasonable.

But is this low price helping us? Sure, it means that less money is flowing into the gas tank and out the exhaust. And in today’s conditions any savings is welcome. But the savings are not enough to ease the pressure on the average American family who are faced with lowered incomes, lack of job security and a fear of what the future will bring. A saving of even $100 a month on gas expenses will not help in a major way towards paying off a mortgage or averting bankruptcy.  In New York, bankruptcy attorneys in Suffolk County and Nassau County are reporting a noticeable rise in clients requesting financial hardship assistance.

We have a new President and he is urging us to keep the faith and hold on until things start to improve. Absolutely! President Obama, despite his recent slip in the ratings, is still looked upon by most Americans as the man who can lead the country out of the morass we are in.

The President has been as good as his word and has set the ball rolling with a $787 billion stimulus package, a bank rescue plan and a housing program which seems like a great start. But the question that is causing much debate is, whether this is the right way to go about it and if the funds are going to be properly utilized. We are still hearing of executives padding their paychecks with money that is coming not from their profits, but from handouts given by the government, or, in other words, the taxpayers. They are still flying to meetings in their luxurious corporate jets. No one is saying that commercial activity should stop or that American industry should appear before the world dressed in rags. But have the people who caused this problem in the first place learned their lessons?

Even as the measures were announced, more banks appeared to be on the verge of collapse. Federal Reserve Chairman Ben Bernanke recently stated that we probably would not begin to see the first signs of recovery until sometime in 2010.

While no one expects a miracle, the question many working class Americans are asking themselves is how long can they hold on? Economic recovery for the country may take a year or two, but they can’t afford to wait that long for their personal finances to improve. The growing number of people you find in the waiting areas of foreclosure attorneys in Nassau County, and bankruptcy lawyers in Suffolk County and so many other places both in and around New York as well as other places in the country are evidence of this.

But the fact that these folks are facing up to their financial problems and getting legal advice on what actions they can tale to protect themselves and their families when faced with the prospect of financial disaster is a positive sign. Things will improve; there is no doubt about that. But until the tide turns, wise people in the Greater Long Island area will be consulting foreclosure & bankruptcy lawyers.

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The major story coming out of Washington right now is the failed bid to bail out the “Big Three” automakers. There are numerous points of view on the issue, but it seems that much of the debate is being driven by emotion at the expense of reason. This is not surprising- the idea of giving more of their hard earned tax dollars away to failing corporations is extremely repugnant to people barely avoiding foreclosure in Nassau County. What we must do in order to make the best decision for the country at large is to step back and really examine the consequences of letting these companies fail.

Allowing the three largest domestic automakers to close their doors would have an enormous and immediate impact on the national economy. The amount of jobs that would be eliminated overnight could range into the millions. Not only the workers at the plants in Detroit would suddenly find themselves without a source of income, but also all of the workers at the plants that supply parts to the larger factories. These smaller factories are spread throughout the country, and in many cases are the major employers in their immediate area.

As the parts these plants make suddenly become unnecessary, so too does the need to deliver them. Any trucking or shipping company that does business with domestic automakers in any capacity would likely find themselves unable to keep their current workforce. Maintenance of delivery vehicles would also become a less sought- after commodity. Once you begin to extrapolate the immediate impact in this way, it is easy to see how widespread the problem would become if these automakers were to shut down.

The possibility of these newly unemployed people finding other employment would also be extremely slim. The local economies around these auto plants basically depend on the majority of the workforce in that area having enough disposable income to sustain them. If one auto plants lays off 50,000 workers, that is 50,000 less people who will be going out to eat, shopping, going to the movies, employing domestic help, etc.  Any industry that depends on well-paid workers patronizing their businesses will suddenly be cutting jobs as well. With 50,000 new workers trying to find work in a town that is shedding jobs, the prospect of success is close to zero.

A drastic and immediate increase in unemployment during a period in which the economy is already shedding jobs is a disaster in the making. If these automakers are forced to close, the people that they employ are likely to soon become the newest beneficiaries of unemployment insurance and other government assistance. State governments where newly defunct plants are located will face major budget shortfalls as their income base dries up. The Federal government will then be increasing assistance to states and individual workers while also facing a vastly decreased influx of tax dollars. Since many of the domestic automakers also supply parts for military vehicles, the Federal government would also likely have to create a new infrastructure to address this shortfall. Increased expenditures for unemployment, welfare, state assistance, and replacement of necessary military supply chains, all while facing a shortfall in tax revenue, could end up costing the government far more than the proposed auto bailout. We need to fully examine all of the facts, and not simply act on anger or disgust when addressing this important issue.

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Month after month of non-stop battering, each time some optimistic spark deep within produces a faint glow of hope that it can’t get any worse, something new goes wrong.  This month consumer confidence was like a sky diver with a defective parachute. The reason? More bad news of increased job cuts, and decreased retirement accounts.

In fact, there was no good news of any kind for the short term. The best news, if you can call it that, was from the Fed which said that the economy is undergoing a “severe contraction” that would last for the first half of this year.

All the major retailers reported bad fourth quarter results, and home prices recorded the sharpest drop ever. Search where you will, there was no good economic news anywhere. The best news available was actually the absence of bad news – gas prices did not show any indication of going up in the near future.

In New York, the Conference Board advised that its Consumer Confidence Index which showed only a small drop in the December – January period (perhaps because of the holiday mood) experienced a sharp drop of 12 points this month to currently rest at 25, far below the projected level of 35 that experts had predicted. Nassau County foreclosure lawyers say they may be able to help stop or prevent foreclosures, or relieve financial burdens if they are called in to help early enough. It’s very important not to delay asking for help from a bankruptcy or foreclosure lawyer.

Foreclosing on a mortgage is a major step for any family and the fact that foreclosure attorneys are being consulted in this volume only substantiates the fact that many families have reached the brink with literally nowhere to turn.

Most analysts say that looking ahead, at least in the short to medium term, increasing worries about business conditions, corporate earnings and employment security are creating a vicious cycle of steadily reducing consumer spending which is exactly the opposite of what is required to kick start the economy.

Consumers are also scared by the free fall in home prices which have plunged by over 18%, the largest fall in 21 years. Today’s property prices are what they were in 2003.

While consumer confidence will naturally be affected by what has happened since last September, what is worrying is that even optimism for the future was absent until Obama took office. It surged then, but has already started to drop because illogical miracle solutions that people hoped would keep them away from bankruptcy law firms in Suffolk County and other parts of New York, did not materialize.

There may be hope for those who are able to hold on for a few more months may not see a return to prosperity, but at least a light at the end of the tunnel.

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Experiencing a financial crisis can be embarrassing. Often we might try to hide it or otherwise compensate for it in some way: some people will do just about anything to avoid defaulting on their obligations. The fact of the matter, however, is that more and more people are failing to maintain their financial status; the global market downturn is having a monumental impact on us all. Indeed, America is encountering an unprecedented wave of credit defaults, foreclosures, and bankruptcies. For some, it might help to know that you are not alone- even the most financially thrifty and responsible persons can be deeply affected by the turmoil in this unheard-of worldwide economical sandstorm.

The year ending 2008 is expected to see as many as 2.2 million home foreclosures, which was the same amount for 2007 when foreclosures were up by an extraordinary 75%. That is an enormous percentage of the total homeowners in the country.  In fact, during a particular 6 month period in 2007, foreclosures numbered 200,000 or more every month. Because there was a record period of growth, there will now be a record period of decline that will impact people from all walks of life. So many homeowners are struggling that the government has passed legislation that will prevent people from losing their properties in the light of this worldwide crisis.

Bankruptcy filings are up as well- by more than an astonishing 30%. By the end of 2008, it has been projected that 1.2 million bankruptcies will have been filed for the year. This is occurring even with the new bankruptcy laws enacted in 2005 that were designed to make it harder to file bankruptcy. In fact, there are so many new bankruptcies being filed that it has created a nearly overwhelming strain for bankruptcy lawyers and clerks- perhaps some of the only people in the world to be benefitting financially from this economic meltdown. Their newfound business will be bitter-sweet, but the fact remains that their services are needed now more than ever. As if to illustrate this point, bankruptcy filings are especially high in the areas hit hardest by the housing slump- California, Florida, and Michigan all report filings up 30% from this time two years ago, and those numbers are expected to increase for some time. Fortunately, many bankruptcy proceedings are allowing consumers to keep their homes, thus alleviating the number of foreclosures the country is currently experiencing.

Last quarter, 1% of all credit card accounts were considered seriously delinquent- 90 days or more past due. When you consider that the total credit card debt in this country is currently 15.4 billion dollars, that represents a huge portion of balances that are technically doomed to default. Last month alone, credit card debt rose by 11.3% – an unexpected increase, but one that has been trending with similar increases for several months now. This means that consumers are using their revolving accounts more to maintain their basic expenses, especially now that funds from refinancing mortgages have virtually evaporated. This is dangerous territory from a credit standpoint, as the situation will almost surely result in more people filing for bankruptcy protection.

The point is that many people are struggling. Even responsible people who have always been very careful about their finances are being included in the ever-increasing surge of foreclosure notices, collection activities, and bankruptcy filings. But you should know that you have options. There are ways to get help, and there are things that you can do to pull yourself up from the drudgeries caused by the global financial catastrophe that we are all experiencing. Bookmark this blog, as we will discuss in clear terms how to manage, utilize, or avoid any of these predicaments.

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Times are tight- there’s no doubt about that. Just look at the growing number of vacant and boarded up homes in Long Island to verify that. Foreclosures are on the rise in New York, and most consumers are not educated enough in these matters to effectively facilitate their own rescue, or quietly and appropriately allow to happen what in many cases is inevitable- without doing unnecessary damage to their credit, legal standing, and emotional well-being. For these reasons, it is absolutely crucial to consult with qualified and experienced New York foreclosure attorneys. Many people, however, do not take this vital step, as they do not truly understand what foreclosure attorneys can do for them. Let’s examine this:

First of all, a foreclosure attorney brings piece of mind. Knowing that your situation is in competent hands can be a big relief. Your finances and all related agreements will be reviewed, and the attorney will discuss your situation in general. If you have already received a summons or complaint, the lawyer will respond to that while keeping you within very tight legal guidelines. If you are unemployed or underemployed, the attorney will argue under a statute that allows extra time to file your response to the complaint, and may also allow a legal delay in the foreclosure proceedings, up to six months. Responses to the complaint will include any defenses developed by you and your legal counsel.

Believe it or not, part of a foreclosure attorney’s job is to review ways to actually prevent the foreclosure. They will discuss possible methods used to gain foreclosure prevention assistance with you, such as those offered by State and local governments and social organizations. In addition, they will explore your standing under the Federal program known as Hope Now, and will be able to explain what this program is in terms that you can understand.

If a foreclosure is unavoidable, a foreclosure attorney will advise you whether to ask for a “Strict” foreclosure, or a “Foreclosure by Sale.” Each type is very different, and needs expert understanding in order to determine the best choice for any particular situation. To prevent either type of foreclosure, an experienced attorney may assist you in obtaining a “Deed in Lieu of Foreclosure.” In most cases, a deed in lieu of foreclosure allows you to return the property title to the bank without forcing them to incur court and litigation costs, and in return, the bank or lender agrees to not seek judgment against you for any amounts owed that the return of the deed does not cover. These are all highly complicated issues, and therefore reinforce all the more why a professional foreclosure attorney is needed.

It’s not just a problem here in Nassau and Suffolk counties on Long Island, NY. All across the country, Americans are feeling the strain of an economy that is attacking their finances from all angles. Our system is not diseased by defaults, bankruptcies, and foreclosures- those are merely the symptoms of the illness. The real disease is the growing and malignant cancers of excess debt, and increasing expenses. While everyone might build their debt in their own way, we all typically suffer in the same ways when expenses increase. It’s one thing if one or two expenses go on the rise, but when all of the major items that we need to survive in this economy increase dramatically and simultaneously, it means trouble. For these reasons, is it any wonder that we are experiencing this dismal spate of foreclosures, defaults, and bankruptcies? What has happened? Let’s take a look:

The most significant expense-related problem to occur for most Americans was the dramatic increase in gasoline prices. This was caused by an increase in demand, coupled with the decline of the dollar. Very recently, we have witnessed the highest per-barrel cost and the largest percent of cost increases in history. This unprecedented occurrence nearly doubled the cost of vital items and services. As most Americans travel more than twenty minutes to get to work, our cost to actually go to work increased substantially. We went from unrestrained travelers, to citizens who count every mile, and every dollar.

Groceries and pet food have also experienced huge price increases. This has been caused in large part by the excessive cost of transportation. Most of the trucking industry, which is essential for consumables to get where they need to go, runs on diesel fuel, which has seen monstrous price hikes. In addition, the surplus demand and correlating price increases have cause corn and wheat to exponentially increase in price in a very short period of time. The fluctuation of these two items alone has served to severely skew the national average retail food costs.

Heating costs have gone up in direct correlation to the price of oil. Home heating costs were already at record levels when the economy began its more pronounced nose-dive, and now many Americans are wondering how they will afford to keep their homes warm throughout the long winter that lies ahead. To exacerbate this problem, the high cost of delivering energy sources has also risen.

The increased cost of doing business has hit harder than anyone might have imagined it would. The frozen credit market, and the housing crisis has served to make loans nearly impossible to obtain, and when extended have abnormally high interest rates. The types of loans that provide the capital for day-to-day business operations in America are a critical part of our economy. For this reason, we are feeling the effects of the increase of this particular expense rather sharply.

While we obviously feel the pain when the cost of large items rises even further, we pay special attention to the cost of small things- the little everyday things whose costs we don’t normally take into consideration. The cost of coffee and doughnuts in the morning, an espresso in the evening, renting movies or eating out, buying a pack of gum or a newspaper, internet and utilities- nearly everything has increased. In reality, it is through the small things that we truly can define how deep this problem actually lies.

These monumental price hikes are causing many to go down the roads of foreclosure, bankruptcy, and default. While it may seem overwhelming at times, we can adjust and pull ourselves out of this mess, though it may require some time. Bookmark this blog, and in the next installment, we’ll discuss ways Americans are decreasing or even eliminating the above listed expenses.

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