What If I Never Find Another Job?

One distinct disadvantage of having an overactive imagination is a tendency to dwell on "worst case scenarios".

Now, don't get me wrong - there are some REALLY ugly worst case scenarios out there - for instance the Yellowstone caldera blowing it's stack and pretty much completely destroying the human race as we know it.

But, no, with SO many people getting laid off the last few months I am beginning to wonder just exactly what "end-stage economic disease" might look like for someone who exhausts all his resources.

People keep telling me that there are safety nets in place out there and no one need be homeless who doesn't want to be, but sometimes I find myself wondering.

There is unemployment insurance to be sure - if I understand it the better part of a year of at least some money coming in to attempt to pay rent and keep some modest food on the table, but once that, savings, and the generousity of friends and neighbors is exhausted, what then?

I've heard that the next stop is a place in Over-The-Rhine called The Drop Inn. I find myself wondering what one's first trip down there might be like. Does the last friend or relative to throw you out take you down there? Do you have to hike miles there yourself? Are there other facilities like it in the area?

And then - what do they do with you there? I understand all the shelters are pretty much intended to be temporary. With absolutely nothing but the clothes on your back how do you climb back towards independence? I've heard a great many stories that it can be done, but sometimes I find myself wondering intensely about the details.

Perhaps it's all ultimately just a bad dream. Perhaps in most cases long before one loses one's last shelter the economy will turn around and some sort of employment and continuation as an independent member of society can be arranged.

One can only hope ...

What ARE You Going To Do With Your $600?

Looks like your $600 tax rebates could be in your hot little hands as early as mid-May.

Reports are that the IRS is already gearing up to get these checks out.

Now the really controversial part of this thing is that people who don't earn enough to pay income taxes but had at least $3000 in earned income would be eligible for a $300 rebate.

What many people don't understand is that someone working and making as little as $3000 HAS paid taxes - Social Security taxes.

In fact, I've often wondered why they even go through the illusion of separating out the Social Security and regular income taxes.

It all goes into the same pot.

With no true "hard" currency, there is no "reserve" currency. Current activity HAS to pay for people drawing Social Security benefits because there truly is no way to "save" any money under our current system.

Supposedly the last time they did these "rebates" after 9/11 it helped the economy in some measurable way.

Of course there's still some details to be ironed out in the Senate, but I'm guessing a pretty good collection of people will have some extra money to spend foolishly quite shortly here ...

Economic PAIN Forecast On Heels Of Job Report

Tom Redburn is predicting serious financial pain in tomorrow's New York Times:

"... the economy actually lost jobs last month, ending a four-year string of uninterrupted gains in employment."

"A sharp rise in home foreclosures and a fall in home prices would also hurt, reinforcing the Democratic argument that Republican economic policies are primarily designed to help the rich while leaving the middle class less secure and the poor worse off."

"... an economic slowdown, perhaps even a recession, seems all but inevitable later this year and into 2008."

You got that right.

"With the latest jobs data, there’s no longer any doubt that the Fed will act to cut rates — perhaps by 1/4 percentage point, perhaps by 1/2 — on Sept. 18."

I hope he's right on that. If he's not, we're all in DEEP trouble.

Even with a half-point cut we may be in for one mighty rough ride.

And, in related news, you can now buy Alan Greenspan's new book, "The Age of Turbulence", from me: