Food Stamps

By Quang Nguyen



People used to have negative feeling when talking about food stamps. Well, during this current economy, more and more people have to take advantage of food stamps to survive. Not just inner cities, but everywhere, the range of food stamp users is getting wider and more more diverse. It is estimated that the food stamp program reaches record high with 36 million users for milk, bread, and cheese. The majority is in the cities, but there are signs of users in suburbs with foreclosures. Within the 239 counties in the US, a quarter is now under the food stamp program. Some counties like Appalachian, as much as half of its 4,600 residents have to live by with food stamps.

Things get worse. It is estimated that almost half of all American kids will experience food stamps at some time during their childhood. Even though most people who use food stamps are not starving, we need to see the big picture here. The fact is that many people who need to use food stamp often do not get them. According to the US Department of Agriculture, dozens of states failed to reach their most needed citizens. The USDA stated that one in seven American households does not have food security in 2008. In addition, about 15 percent of American households are struggling to get enough food on a daily basis.

The average American like Ms. Luna said that without the food stamp program, she would not know what to do since she lost her job. Americans are facing two issues coming at once: jobs declining and prices for basic goods rising. You really know it is bad when you know that one in every eight residents in Michigan receives food stamps, and it's one in seven in Kentucky. The poverty live is less than $28,000 for a family of four and if this is your situation you would receive $100 per person per month.

Sources:
http://www.nytimes.com/2009/11/29/us/29foodstamps.html?_r=1&hp
http://news.yahoo.com/s/ap/20091127/ap_on_he_me/us_med_children_food_stamps
http://www.cbsnews.com/stories/2008/03/31/eveningnews/main3984469.shtml

Strategy During the Current Economy

By Quang Nguyen



Companies are struggling with the economy. It is difficult to keep their employee payrolls. Many companies are now trying new tricks to cut costs. One of which is getting low paid interns. With a tag line like "giving unexperienced worker a chance to gain knowledge", employers are increasing their internship programs. Many managers see it as the cheaper way to double the workforce and make a higher profit. Many people who were fired from the recession, now finding themselves in the position of these low paid interns just to live by.

Another trick to to increase overtime. Since many companies already laid off their employees, the rest need to work much harder to compensate for the loss. The employees are paid more for their overtime, but they must work much harder since the schedule is mostly on everyday of the week. They stated that overtime helps them to take care of their family and maintain a higher lifestyle with more money coming in. It seems to be a win-win for both employers and employees.

Companies also take advantage on the foreign workers. Most of foreign workers have a much higher skills and degrees than the average American since not everyone could come here. For example, Indians who finished their college back home and came to America for grad schools. These people are offered jobs with a much lower paid. Things get much worse for illegal immigrants who works at basic jobs. These people do not have their rights protected and many companies are taking advantage on it.

Sources:
http://www.nytimes.com/2009/11/28/your-money/28interns.html?_r=1&ref=business
http://online.wsj.com/article/SB125926676195965443.html
http://www.nytimes.com/2009/11/28/business/global/28return.html?scp=1&sq=&st=nyt

Investing in the next big thing: China

By Quang Nguyen



With the struggling US economy, it is difficult to estimate when this crisis is really over. The smart move is to invest in China, the new world class economy that is growing strong. With an annual growth of 5% to 8%, China is a great portfolio for your investment. The government of China is supporting individual investors, so you can purchase any share that is listed on the Hong Kong or US exchanges. Moreover, there are mutual funds that will help you to invest in companies within the mainland China. However, expert in the field strongly recommended you not to invest directly in China. Instead, you can invest through the Hong Kong exchanges. Chinese companies are listed as "H" shares, and "Red chips" are Hong Kong based companies that get their profits from China.

Recently, three investment firms, representing many individual investors, joined Sina Corp.'s management team after investing $180 million in the company. Sina is China's largest internet portal company. Sina could be compared as Google or Yahoo in China. Imagine spending just $180 million to control the most popular company in China, that $180 million could not even get you Facebook in the US. Since the average earning per person is much lower in China, the price to invest in good companies there is fairly cheap.

Investors also need to avoid risks. Many Chinese companies do not have good accounting transparency and corporate governance standards that you are used to see in US companies. Therefore it is much riskier to invest in China. However, high risk is compensated with high return. A country with more business traveling, more tourists, and more international brands is in high demand. The price of staying in cities such as Shanghai is getting close to New York. You need to hurry up to invest in this new market before it is too late.

Sources:
http://moneycentral.msn.com/content/P37592.asp
http://online.wsj.com/article/SB10001424052748703499404574560940890771698.html
http://www.businessweek.com/globalbiz/content/apr2006/gb20060420_304668.htm

Financial Crisis Affects Black Friday Shopping

By Quang Nguyen



As most people have predicted, big sales off and promotions could not get Americans in their black friday spirit. Since there was a death in Valley Stream, NY as a result of the craziness in black friday shopping, national stores like Wal-mart have tighten their security to control the crowds. However, it was not as chaotic as it has always been in black friday. Although many sale items were gone early, it is reported that sales were slow this year.

Not every store was full, for example, Sam's Club in Fullerton, CA was mostly empty. For Home Depot in CA, it seems like people enjoy the beach more than early Christmas shopping. At the Target store in Irvine, CA, customers said the shopping was ok since there were lots of parking spaces. Some customers even stated the fact that many shops did not given out as much incentives as previous years has contributed to the low turnover this black friday.

Optimistic stores however reported that black friday this marked as a sign of recovery. They said that customers were mostly using cash and debit cards instead of credit cards. Shoppers spent their money on practical things like pillows and pajamas since they were trying to cutback. Store owners expect a higher shopping turnover for Christmas as the economy is slowly stabilize.

Sources:
http://www.nytimes.com/2009/11/28/business/28shop.html?ref=business
http://www.ocregister.com/articles/orange-221034-across-shopping.html
http://news.yahoo.com/s/ap/20091127/ap_on_bi_ge/us_black_friday_holiday_shopping

Dubai Debt Affects Stocks in US and Asia

By Quang Nguyen




The financial crisis has affected everyone in the world, and now it's coming to the Middle East. Dubai World, representing the Emirate's investment industry, is seeking for another 6 months in order to pay its debt of $59 billion. As a result, the stock markets in the US as well as Asia have reported low on Friday, November 27th. Dow Jones was down 1.48%, S&P fell 1.72%, Nasdaq slipped 1.7%, Hang Seng in Hong Kong declined 4.8%, Kospi in South Korea dropped 4.7%, Nikkei in Japan and Taiex in Taiwan both sagged 3.2%.

Things might be worse than it seems. The total amount of Dubai's debts could be as high as $80 billion. It is not reported who are the creditors of these debts. As a result, many banks have given their official statement that their investors are not at risk.

Some incidents also taking part in this Dubai crisis. For example, the closure of the financial markets in the US for Thanksgiving increases the uncertainty of the global market. In addition, the Eid al-Adha, a religious holiday in Dubai, makes the financial market unpredictable. Moreover, a computer crash at the London Stock Exchange causes dealers in Dubai unable to trade for many hours.

People are afraid of a domino effect since Dubai is one of the biggest economical market. The crisis in the US has already weaken the world's economy. Could Dubai, known for its lavish hotels, palm-shaped islands, and indoor skiing, really be the next on the bankruptcy list?

Sources:
http://www.nytimes.com/2009/11/28/business/28markets.html?_r=1&hp
http://business.timesonline.co.uk/tol/business/markets/the_gulf/article6934261.ece
http://news.yahoo.com/s/ap/20091127/ap_on_bi_st_ma_re/us_wall_street