Photo: Code Arachnid

I’ll spare you the environmental lecture—Just imagine your life with out a car payment. Sounds pretty nice, right? Read on to see how you can make it a reality. Even better: you don’t have to wear spandex biking shorts.

Honestly assess the cost of a car.

Of course your ride really costs a lot more than the monthly payment automatically usurped from your checking account. AAA puts out a nifty little publication yearly (http://www.aaaexchange.com/Assets/Files/200948913570.DrivingCosts2009.pdf), and has been doing so since 1950, that helps you assess the true value of a car, factoring in fuel, maintenance, tires, insurance—all of those things that seem to sneak up and empty out your savings account. (The average total cost per year is around $8,000).

If you are more digital than analog, try using this calculator, too: http://www.commutesolutions.org/calc.htm

What most avid bikers and public transit commuters say, though, is that it is a quality-of-life issue more than a financial one—though the money saved doesn’t hurt. A heart-pumping bike ride or subway ride with a paper (minus the crushing rush hour commute in a dense place like New York) simply makes for a better start to the day than inhaling exhaust fumes from the car in front of you.

Another thought: if you are exercising by commuting, you could also ditch the gym membership, at least according to one study about “active commuting”. Basically the study showed that people who walk or bike to work are less likely to be obese and have healthier blood pressure. (The researchers said more study was needed in the field, and that working out on top of an active commute is even better than the commute alone).

Find a bike-friendly city.

Most of the protests to going car-free have to do with hometown: It seems to make sense to be carfree in bigger cities with the cache for bike lanes and congestion that demands public transportation. But, surprisingly, the League of American Bicyclists conducted a comprehensive study of American cities, small and large, (http://www.bikeleague.org/programs/bicyclefriendlyamerica/pdfs/bfc_master_list_web.pdf), and square-footage, sheer size, doesn’t have much to do with bikeability. The #1 bike-friendly city in America, Davis, California is just 10.5 square miles, while the #2 bike-friendly city, Portland, Oregon, is 134.3 miles. Cedar Falls, Iowa? Tulsa, Oklahoma? Probably not at the first to come to mind when it comes to living without a car, but they’ve both recently made the bike-friendly list.

Population is also not a factor. Davis had 62,593 people in the 2008 Census, while Portland had 557,706. New York City, one the League’s list but not incredibly bike friendly, clocked in at over 8 million.

Communities are also pushing hard to promote biking, so check out the tax-dollar and charitable programs in your area. In Champaign, Illinois the Bike Project (thebikeproject.org) fixes up old clunkers and sells them on the cheap. They also offer a free class to teach people how to fix their own bikes to keep them on the road. A bike sharing program has started up in D.C. Public bikes are locked up in high traffic areas around the city. Swipe your card to unlock one, cruise for as long as your like, then drop it off at any of the docking points and you will be charged by the hour.

Choose your neighborhood wisely.

Buying or renting within a few miles of work may seem far fetched to some people, especially those in sprawling Sunbelt cities like Atlanta or Houston, but new zoning laws are looking to reverse that trend, for better or worse. Tax breaks are given in Atlanta and many other cities for new developments that are “mixed use,” meaning that homes and businesses are under one roof.

Also, a study published in August called Walk the Walk (http://blog.walkscore.com/wp-content/uploads/2009/08/WalkingTheWalk_CEOsforCities.pdf) shows that the so-called walkability of a city increases home values. Walkability here is defined by the social and shopping destinations that you don’t need a car to get to. The study ultimately found that, “Houses with the above-average levels of walkability command a premium of about $4,000 to $34,000 over houses with just average levels of walkability in the typical metropolitan areas studied”.

Consider going half-car.

No matter how many pains you go to trying to find the right place to work and live, there are going to be things that you don’t want to lug on the bike or bus, like, say, a Christmas tree or your weekly load of groceries. Clever car sharing companies, like Zipcar, are looking to capitalize on exactly that need for carless people. (http://money.cnn.com/2009/08/26/news/companies/zipcar_car_rentals.fortune/)

The idea is elegantly simple: Become a Zipcar member. When you need a ride, use an iPhone app or computer to find that closest Zipcar to you, which you reserve online. When you approach the car, touch your membership card to the window and the doors unlock automatically. The keys are inside, as is a gas card, and you are charged one flat rate per hour, about $8, depending on the city. Park the car in your hood and the process starts over.

As of January 1, 2009, Susan Sheehan of the University of California at Berkeley found that 24 car sharing programs in the United States has 309,437 members, definitely qualifying it as a trend that extends beyond one brilliant business idea. (In Canada, 15 organizations had 46,802 members).

Photo: ThreadedThoughts

There’s no doubt that the recently extended Cash for Clunkers program is breathing new life into our gasping auto industry—and it is drawing attention to the kinds of cars it is intended to promote. Tracking of the 1.5 million cars viewed on AutoTrader.com shows that cars with good gas mileage have gotten a healthy boost in interest. The Prius, for example, showed a 212 percent increase in interest from May to June, and another 20 percent increase from June to July. Interest in the Hyundai Elantra increased 109 percent from May to June, then another 93 percent from June to July. In the same time period, all other cars showed an increased interest of around 30 percent.

The other big takeaway is that most of the buyers don’t seem to be those that were in the market anyway; they are new customers, attracted to the notion of getting a deal on a new car. “What dealers have seen is that many of the customers taking advantage of the program could best be described as misers—folks who would normally have driven their existing car until the wheels fell off then replaced it not with another new vehicle, but a used one,” says Brian Gluckman of AutoTrader.com. This may or may not be the case with the three new car owners we talked to. To learn what Cash for Clunkers could mean for you, we talked to three different individuals to get their real-world experiences:

Alex Bussey, A First Adopter

2001 Jeep Grand Cheroke to a 2009 Elantra
$18,000 minus $4500 in Clunker money and other rebates = $12,000

Alex Bussey of Asbury Park, NJ first heard about Cash for Clunkers before the top blew off his existing car, in a mention on the New York Times web site. He did a little research and it became very clear what to do next: get his paperwork in order and get his Jeep to a dealership pronto.
Though he thought the program was completely clear from poking around on CARS.gov, “it was a different story at the dealership,” he says. The dealer was pretty confused about the site they had to register on so they repeatedly called Busey back for more information.

In addition to dealers complaining about the bureaucracy of the program, there has been some backlash from consumers who say their tax dollars shouldn’t be going to replacing functioning cars with fancy new ones. To this Bussey provides an anecdote: He grew up in a little town in New Jersey, where there were lots of senior citizens.“ They said they didn’t want to pay taxes to help the schools, but we still paid taxes to help the senior citizens,” he said. “This debate is nothing new, only now it’s a little more… substantial.” He says, yes, the program is obviously costing someone, but that he finds the plan “ingenious” because it is helping out the consumer and the car industry in one swoop.

Bradley Chambers, A Convert

1998 Nissan Pathfinder to 2008 Jeep Patriot (new)
$23,000 minus $4,500 of Clunker money and other rebates = $16,600

Bradley Chambers first heard about Cash for Clunkers from his wife. She forwarded on a Yahoo email that made him rethink his 1998 Nissan Pathfinder, which he says smelled a pretty funky and was definitely worse for wear. He knew that he needed a new ride, but the Chattanoga, TN resident said he’s not a new car kind of guy.

First of all, he doesn’t like financing anything or carrying around debt—the obvious reality for most new car owners. “I’m the cheap one,” says Chambers, referring to his relationship with his wife. He was also a little weary of the Cash for Clunkers program because he doesn’t like big government spending programs in general. “When I got my $600 back from the government for my tax rebate last year, I put it straight into savings,” he says. “And I think that’s what most people did.” But this program is different in Chamber’s eyes because he actually had to go out and buy something, directly stimulating the economy. For that reason, he’s definitely a fan of the program now.

He crossed the nearby Georgia boarder for a special deal he heard about in a TV ad for a 2008 Jeep Patriot still on the lot. His new car cost a lot less than the Kelly Blue Book value. The process, in all, wasn’t too confusing for Chambers; It was the dealership which seems to still be working the details out. But when they do, the program will definitely provide dealers with a kickback, by Chambers’ reckoning. Most of the Jeeps that he saw at the Georgia dealership were selling at sticker value, Clunkers money or not.

In the end, Chambers said he’s happy with the program, if they continue to use the existing stimulus money on the CARS program, transferring it from other projects, he’ll remain a fan, even though it’s against his nature. “In my office we were joking that everybody bought me a new car,” he says, but he still thinks the program works because it is measurable: The government can say they got X amount of cars off the road and can count the environmental impact of the program.

Vince Iulianetti, A Proponent

From a 1994 Dodge Dakota to a 2009 Honda Accord
$19,500 minus $4500 of Clunker money = about $15,000

Vince Lulianetti is a business savvy guy. He’s the host of a business talk show on LA Talk Radio, and he’s definitely a fan of the Cash for Clunkers program. “It is an excellent program. For the people buying, the dealership, the manufacturer, and every state participating—a lot of people benefit from this program,” says Lulianetti.

The Lewes, Delaware resident said he was bombarded with information about the program, so it was pretty hard to miss. He had an old truck and his wife was in need of a new car, though he wasn’t actively on the market, so it just made sense. He found the process to be clear enough on his end. His son is a general sales manager at a car dealership, so he naturally knew where to go.

Lulianetti recognizes some peoples’ complaints that the program is taking good cars and junking them, but he said he still defends his support of CARS. His new car is consuming 10 mpg less in gas, and those numbers add up. And, he adds, no one knows where gas prices are going next. “Yes, maybe it is taking some good cars off the road, but they should be off the road,” says Lulianetti.

His only complaints about the program? That it should have started around 6 to 8 months ago when the auto industry was really hurting so the money could’ve indirectly trickled down to factories. Also, he would like to see a government entity running the program that is a little more familiar with how the dealerships work and one with a more intimate knowledge of the auto industry.

If you want to go to Spain, fake yourself out with St. Augustine, Florida.

(bronayur)

You’d like to be baking in the sun off the coast of Spain in oversized sunglasses which reflect the villas lining the beach, a glass of sangria in hand. Go to St. Augustine Florida instead. The minute you feel those rays bearing down on you, you’ll be glad you got away and the feel of the place will quickly transport you to another time and place. Since the Spaniards were the first explorers to set foot in the US, it only makes sense that the oldest US city’s got that distinct flair; it was settled on the heels of Juan Ponce de Leon’s 1513 landing.

Why you will be transported: The balconies overlooking narrow streets in the Old City smack of Barcelona. Stop by the whitewashed Basilica of St. Augustine, a great example of old-school Spanish Colonial architecture. Grab a pint at the ancient Taberna de Gallo, where you can listen to Spanish folk tunes by torch or candlelight-this place is so staunchly old school that they’ve shunned electricity, too. If it is the posh beaches that you still dream of, there are plenty to go around in the nearby national parks, which you can get into for just $6. For a more close-up and personal encounter with Spanish history, check out the ghost tours, including the Ghost of the Matanzas boat tours.
All that and you’ll also get: A sip from the very Fountain of Youth the Ponce de Leon was looking for when he set out on his expedition. Oh, of course it’s here, in an orange grove with men in tights.
How much you’ll save: Buckets. Hotel rooms are very reasonable, as are the things to do. You’ll save many hundreds on the air ticket alone.
http://www.historicstaugustine.com

If you want to go to Paris, fake yourself out with Quebec City.

(palestrina55)

An elegant French city is so just magical, especially when its prize is rich, decadent food. You’ll eat just as well as you would in Paris in the bejeweled, second largest French-speaking city in the world-and it’s not even in France.
Why you’ll feel transported: Sometimes the best part of traveling to another country is not understanding a thing, making up your own back story and marveling at being a complete outsider. You’ll find plenty of that in Quebec City, where over 95 percent of people are originally from France, and most speak French as their first language. The skyline of the Old City is marked by the opulent Le Chateau Frontenac. (Though it looks like a fairytale castle, you can stay there, for a price.) Check out the pristine old chapel at the Musee de la Civilisation , which is a generally good starting point for making sense of it all. Get lost in the narrow, charming St-Jean-Baptiste neighborhood. Still, you can’t die without seeing the Eiffel Tower, so check the Paris Grill for a replica of the real thing. All that and you’ll also get: Boites à chansons, the wonderful Celtic-influenced Québécois folk music.
How much you’ll save: The main savings will be on airfare. It’s especially cheap to fly into Maine, New Hampshire, or New York and rent a car or take the train the rest of the way in.

If you want to go to Japan, fake yourself out with Hawaii.

(Jeff Kubina)

There aren’t many places in the world that can stand in for Japan. Japan’s culture is simultaneously both ancient and bleeding edge modern which is one reason it remains an otherworldly fascination for so many people. But Hawaii can help you understand much about Japan without your having to dive headfirst into that culture.
Why you will feel transported:
Hawaiian language is peppered with Japanese words directly lifted from the diaspora. (Have some anpan, a Japanese sweet red bean treat or musubi, a rice ball “sandwich.”) In June, go to a traditional matsuri festival, a unifying summer celebration of identity for places, large and small, all over Japan. The state is dotted with Japanese religious shrines, including Byodo-in, a Buddhist temple which is a recreation of one in Japan, with a serene 12-foot bronze Buddha. Also check out Shirokiya, a Japanese department store in Honolulu that can really make you feel like you’re a part of the everyday in Japan and not a tourist. Go late in the day to pick up that days fresh sushi at half price, just as the Japanese do in Japan. Or pick up the latest consumer electronics, straight outta Akihabara.
All that and you’ll also get: The stunning, lush natural landscape of Hawaii.
How much you’ll save: Tourism is way down in Hawaii so there are lots of bargains to be had. Stay away from the big resorts and rent a condo with a group of friends. Shop for groceries at Costco and cook at home. Spend your days at the beach or in the free public parts. Do these things and a vacation in Honolulu can be almost as inexpensive as staying at home.

The excellent tourism site www.gohawaii.com includes videos and searchable databases for each island.

If you want to take a trip around the world, settle for a weekend in Las Vegas.

(renny67)

Each of the unreal casino-states offers its own charming brand of escapism.
Why you will feel transported: At the Venetian, you can enjoy lunch al fresco at a replica of St. Marks Square or take a ride on a gondola. Paris has its own versions of the Eiffel Tower and the Arc De Triomphe along with an approximation of European café culture. It’s even possible to get an authentic New York deli sandwich at New York New York. Monte Carlo attempts the haute glitz of a real Monaco city-state, minus the yachts. If you can’t get to the pyramids and great Sphinx, you’ll might can be easily fooled at the Luxor, a famed larger than larger-than life Egyptian-themed casino. Another thought: If you don’t sleep for the entire weekend, which is very possible, you will even feel like the vacation is much longer than it really was…
All that and you’ll also get: To either double or lose your life savings in your spare time.
How much you’ll save: Thousands, and a few months of vacation time.

In conclusion, save the right to take the trip of your dreams for the moment you lose your job. Hey, there’s never been a better time to remind yourself why it’s great to be alive.

If you saw this harangue on women’s shopping habits, I want to set the record straight. It’s not that either sex is better or worse—They’re just different. There are certainly things that guys spend more on:

Eating Out

Source: Flickr
According to the Bureau of Labor Statistics’ latest poll, the average guy spends about $1,800 per year eating out while ladies spend $1,145. Is the significant difference because so many men are treating ladies to dinner? Possibly. I find that cooking at home and lugging the leftovers into work saves me at least $100 per month—and that adds up.

Instead, check out this cookbook, Nigel Slater’s Real Fast Food, which will lend some cooking inspiration to even the most amateur of home cooks.

Electronics

Source: Flickr
Men spent an average of $701 per year on “audio and visual equipment,” while women clock in at $536. (Yes, we all spend more on audio and visual equipment than drinking, below, thankfully.) There’s enormous evidence that this is changing as all of our lives become more digital and connected, as everyone relies on technology to navigate life and do business, but men still seem more willing to pay for the high-end gear.

Instead of always having to have the latest and greatest, go second-hand shopping for electronics. I met up with EBay Gadget Director Cat Schwartz at an event geared to Christmas buyers and she was singing the praises of some incredible deals found by browsing for cameras, phones, and computers that have barely been used.

Sports Tickets

Source: Flickr
The 2008 season at Yankee stadium, the last season in the iconic stadium, sent hoards of fans from all over the country to New York City. Every weekend, it seemed, another one of my friends here was hosting another group of young guys who were simply not going to turn this prospect down (and who underestimated how far 160th Street really is from Midtown). Official seats were going from $12 to $400, but on unofficial sites like StubHub.com, the most expensive seats were a painful $1200.

The point? I am not sure how many fans of any particular team are male or female; I am certain that both sexes appreciate their teams. And I know that advertisers and sponsors of these events are zeroing in on the guy’s night out. The upcoming Superbowl has reportedly sold ad space for $3 million, including some 3D ads, despite the economic downturn. If the years gone by are any indication, it will be a study of what marketers think that guys like. (The SoBe lizards will be making an appearance.)

Instead, check out Spring Training for your favorite team in Florida or Arizona’s burgeoning Cactus League.

Drinking

Source: Flickr

Men spend almost twice as much per year on alcohol than women–$552 versus $233. I can just hear the bad jokes now: Men have to drink to deal with women’s shopping, right? Since the price of a drink is usually marked up at least 50 percent if you’re out at a bar, a night out can get seriously expensive, as too many people probably know.

Instead, check out Esquire’s awesome drinks database for inspiration on making your own cocktail. Or plan an “apartment crawl” with your friends, where each person prepares a special cocktail and appetizer and you migrate from apartment to apartment (responsibly, of course), instead of bar to bar.

Cars

Source: Flickr

Yes, it is unfortunately very true. Men do the majority of the car buying and they tend to buy the less energy efficient models. The LA Times reported that there were only 9 cars that women bought more than men. And they’re not just cute (OK, some of them are…) but they’re also practical.

In a time when we most certainly know that our choice of cars affects not only our pocket book but our international policies, it’s better to drive with a sound mind. And… a Prius is much sexier.

Memberships (i.e. Boys Only Clubs)

Source: Flickr

When you think about “exclusive” clubs, most of which involve funny hats, secret handshakes or both, they are by-and-large male. (We’ll try to forget any Ya Ya Sisterhoods for now. You do have to born into that, right? Ha, no fee required!) In fact, the Supreme Court ruled in 1989 to allow women into Rotary Clubs, the international small business do-gooders with a steep entrance fee. Women made up 12 percent of the members as of 2003, according to this article in the Rotarian magazine.

Instead, join a professional organization that is more focused on your field—and inclusive—like the Society for Professional Journalists, or one of the thousands of others out there.

Dating services

Source: Flickr

Not that there’s anything wrong with EHarmony. Many people have met the love of their life through online dating services. But it still costs money. And, according to at least one study in Canada, “For every woman using an online dating service, there are more than 2 men.” And the total amount spent on online dating each year? $214 million. Ouch!

Better than that: keep up with friends of friends. If my anecdotal evidence is worth anything, almost all couples meet through another mutual friend.

Gender wars aside, the moral of this story is to spend wisely, know what it is that you spend on—and what businesses and advertisers want you to spend on—so that you can live more of the good life down the road.

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Ever wondered why women have such large bags? Apparently, they are carrying all the cash for the household. OK, not literally, but ladies do 80 percent of the buying for any given home. It’s no surprise that marketers are leading the “Eve-olution” to woo their bucks, sometimes by tugging at their heart strings. Here are some simple things women spend money on that men don’t. Brace yourself:

1. Beauty products and treatments

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Women spend an average of $471 per year on personal care, while men spend less than half that, about $193, according to the Bureau of Labor Statistic’s most recent survey. A trip to the drug store looking through “blue and pink lenses” tells the tale of how women spend their bucks.

Shaving cream for women
While men’s run-of-the-mill Barbasol costs $2.50, women’s cream starts at $3.29. Is there a secret femme treasure in that cream? The emollients are essentially the same, but the ladies stuff has some added fragrance and, in some cases, vitamins and even antioxidants-Necessary?
Instead: Use a decent moisturizer and skip the expensive stuff that’s full of flowery smells-and not much else that will stick with you.

Skin care products
Among the top sellers on drugstore.com this week: Philosophy’s Hope in a Jar antioxidant skin moisturizer ($38) and the Clairesonic skin care brush. No claims are made here about its efficacy, but the gentle sonic vibrations sent through your skin are apparently worth the $195 price tag to some.
Instead: Eat a healthy, fresh diet and exercise. Sweat is the original detoxifier for your skin.

Spa and beauty treatments
An eye-opening (no pun intended, Botox-ers) study of professional women conducted by the New York Times last year shows that to keep competitive in the work place, women perceived that they also needed to be well-groomed-it was a professional expense more than an aesthetic preference. Women sampled estimated that $3,500 a year on beauty treatments, from eyebrow shaping to hair straightening to hyperbaric chambers, was normal.
Instead: Sorry to say it – but numerous studies have shown that attractive people earn more. But the phenomenon mostly has to do with confidence — and not any physical attribute, according to experts.

2. Organic food

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International marketing studies have shown that women are more likely to buy organic food than men (though they’re also less likely to pay for organics if they aren’t a good deal). In one such study, women said they were motivated by a concern for the environment and for their personal health. Armed with this info, the marketers said they could zero in on women more and make the industry “more competitive.” Sounds great, right? This means women are taking the reigns, steering spending greens on green? Well, sometimes making a show of being sustainable and earth-friendly has trumped the actual cause.
Instead, savvy lady:
An organic strawberry that has traveled thousands of miles from China may not be the best thing for you-or the environment. Though calculating “food miles” can be complicated, the average piece of American produce travels 1300 to 2000 miles, so consider buying produce from a local farmer at a market. Also, that new organic jar of Prego spaghetti sauce has 470 mg of sodium in a half cup. Just because something hails as organic doesn’t mean that it’s better for you, by all means.

3.  Energy bars made “just for women”

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The energy bar market is certainly hot. Nestle threw its money into Powerbar and Kraft bought up Balance Bar for a reason. (Yes, your chocolate-y snack is healthy, love.) Powerbar’s Pria and the Luna bar would like the ladies to think that there’s a bar made just for them.
Instead: Experts say that the word “energy” on a bar simply means it has calories. You’re better off eating whole foods-fruits and vegetables, which have all of the intangibles and photochemicals that an engineered food source doesn’t. Also, if you take a multivitamin daily, you’ll get all of the recommended daily intakes that you need-and you’re body cannot absorb more of them anyway.

4. The Lottery

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So sorry to say it ladies (don’t know if you’ve got all the right numbers, if so I’m definitely behind you), but you spend more on the lottery than men do. One Texas Lottery poll, conducted by a state-run agency, found that women spend more: 54 to 46. With billions being spent on the lottery every year in the U.S., perhaps these times are calling for desperate measures.
Instead: Put the money in bank and forget about it. It’ll be there.

5. Pets

(source: Jannes Pockele)

Yes, they’re cute–and it’s so worth it–but pets can end up costing a ton, especially if you haven’t set out a clear plan about how you’re going to pay for all of those incidentals. (The average dog costs $730 per year.) And they DO come up. A demographic profile of a pet websites shows that the visitors are 82 percent female. Cuddly puppies come at a price.

6. Clothing

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A study conducted last May on international spending habits of people under 30 found that women and men spend their extra money in very different ways: 40% of women spend a majority of their money on clothing compared to just 12% of men. Ladies are willing to go for broke if they have something nice on while they are doing it.

Let’s lay the cliché that women are emotional spenders to rest. The numbers show that, despite women spending more on clothing and “personal care,” men spend more in many other categories, including alcoholic drinks, cars, eating out and-ahem-audio and visual equipment. (So says the Bureau of Labor Statistics most recent Consumer Expenditure Survey.)

Free-wheeling capitalism has always been the heart of the US Economy but the recent $700 billion bailout, a level of government intervention not seen since the Great Depression, is hardly unprecedented. Historically, the Feds have not only taken stakes in banks, steel mills, and coal mines but have even seized control of everything from railways to savings and loans.

(source)

To get some perspective on our current financial crisis, it’s helpful to look back at some earlier bailouts since the Depression leading up to the drastic moves of late.

Railroad Bailout

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Entire industries once considered the backbone of our economy can sometimes disappear as a result of changing technology. During World War I, the government nationalized railroads saying they represented vital supply lines. In the 1970s, the railroads were nearly threatened out of existence by the recent popularity of air travel. The government-owned National Railroad Passenger Corp., better known as Amtrak was created in 1971 and is still reliant on taxpayer money today. Conrail was created in 1976 as a merger of Penn Central (which declared bankruptcy in 1970) and a half-dozen other bankrupt railroads. Conrail fared better than Amtrak, even managing to turn a profit by the mid-1980s and eventually going public.

Lockheed

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The Emergency Loan Guarantee Act, passed in August, 1971 was explicitly directed at shoring up American business enterprises. Its first beneficiary was the aerospace firm Lockheed, a major government contractor, which received a mind-blowing $1.4 billion. As in earlier times, Lockheed’s status as a defense contractor played a major role in the bailout.

United States National Savings Bank/Franklin National Bank

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The first major bank to fail in the US since the FDIC was established was United States National Savings Bank, worth $1.5 billion. Shortly thereafter, on October 8, 1974, the Franklin National Bank in New York also failed. At the time, it was the largest bank failure in US history, and Michele Sindona, the mafia-connected member with a controlling interest in the bank, eventually went to prison and died of cyanide poisoning. The Feds assumed the debts in those cases, and proceeded with a bailout that was simply unthinkable at the time, the equivalent of $7.7 billion by current standards.

Chrysler

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As in today’s mortgage crisis, Chrysler’s downfall was the result of major hubris on the part of its executives but was also blamed on the increasing popularity of cheap Japanese automobiles coming into the US market. Chrysler lost $1.1 billion in 1979, a loss which many feared would ripple through the entire US automotive industry. The Feds stepped in almost immediately, passing the Chrysler Loan Guarantee Act in 1980 which provided $1.5 billion in loans to Chrysler, one of the largest payouts ever made to a single corporation.

Continental Illinois National Bank and Trust

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1980 starts a decade of intense bank failures; the FDIC reports that 1,600 were either closed or received financial assistance from 1980 to 1994. Many of the same questions got asked as get asked today. How much oversight is necessary? And how deftly can we actually assess risk? Continental Illinois National Bank and Trust was once the seventh-largest bank in the US but fell on bad times due, in part, to bad loans for oil producers and investors in the Oklahoma and Texas oil boom of the late 1970s and early 1980s. As the bank was heading for failure, large depositors withdrew over $10 billion of deposits in early May, 1984. The bank was seized by the US government that year, which remained in control until 10 years later when it was acquired by what is now Bank of America, a beneficiary of the current bailout. A few nay-sayers called this one, “Continental’s lending style might be overly aggressive,” one man hauntingly points out in an FDIC report. Not unlike the failures that were a result of the recent mortgage crisis, the bank’s downfall could be directly traced to risk taking and a lack of due diligence on the part of bank officers.

Less Developed Country Debt Crisis

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The LDS Debt crisis was the result of international banks and monetary funds expanding too fast in an attempt to keep pace with the emerging global village in the late 1970s and early 1980s. As development became a driving goal and traditional banking borders were removed, less advantaged countries took advantage of this bank roll. By 1978, Latin America owed international banks a boggling $159 billion. By 1982, $327 billion was outstanding. Experts did protest about the risk and volatility. Imploring warning letters were sent. But it wasn’t until the recession in the 1980s that international banks looked hard at their holdings. By 1982, 40 nations could not foot the bill. The Feds kept the American banking market out of it in the end, and a global recession was narrowly avoided.

What we’ve learned

Is history doomed to repeat itself. Is the US economy doomed to suffer an endless cycle of ups and downs that will forever require the hand of government intervention? Are government bailouts, as some have recently said, akin to socialism?

There are no easy answers to these questions but after the lessons of the 1980s, the Feds have acquired some common wisdom about when banks fail (if not always why). Whenever there’s a period of rapid growth there’s a tendency for both lenders and investors to get too cocky and take on far more risk than they should. Today, there are number of industries on the verge of collapse, including the airline and automotive industries. Should the government step in?

The good news here is that, in almost every case, these course corrections have proved temporary and most finance experts believe they have been both necessary and beneficial in times of financial crisis, war or other national emergencies.

Want more perspectives? Check these interactive sites for more info:

http://www.propublica.org/special/government-bailouts/ gives an excellent visual representation of this historic bailout against others, including a section on if those examples worked out not.

http://www.thetakeaway.org/archives/2008/09/17/5 gives a jazzy audio podcast of the history of bailouts that sparked most of the ideas in this article.

http://images.businessweek.com/ss/07/12/1217_bailouts/index_01.htm is Businessweek’s top-notch interactive slideshow of historic bailouts, domestically and abroad.

Sources:
The 3 above, plus:
The FDIC, http://www.fdic.gov/bank/historical/history/235_258.pdf
http://www.fdic.gov/bank/historical/history/191_210.pdf
The State Department
Gotham Center for New York City History
New York magazine
Time magazine

From Italian truffle butter to Vietnamese saffron, foodies have turned the act of tasting the world’s best food into a competitive sport. Meanwhile, back in your own pantry, you’re lucky to find so much as a can of beans. But even if your own budget won’t support such refined ingredients, you too can be a frugal foodie.

Here are some simple items that can turn your everyday grocery list into something resembling a 4 star menu-for fewer than 4 bucks:

1.    Off-Brand Orange Marmalade $2-3
Why spend the money on high-end (read: expensive) orange marmalade if you’re just using it as a glaze for meat or adding it into a dessert? To get the flavor benefit without the added cost, try adding orange marmalade to an oozing round of soft cheese that has been warmed in the oven, and then top it off with candied walnuts or toasted pine nuts. Serve with crackers. Also, mix with an equal part of mustard and rub on salmon, pork or chicken.

2.    Fresh Dill $2-2.50
Some people think that being able to draw from a collection of herbs and spices is the secret to great cooking. That may be, but quality not quantity is the key to sealing your foodie cred. Those herbs that are browning away on your spice rack aren’t doing anything for a dish’s flavor profile. The trick to making effective use of any herbs is freshness and dill can add a delicious subtle touch to all sorts of dishes. Try mixing it with plain cream cheese and spread on crackers or bagel chips, topped with smoked salmon, diced tomatoes and red onions.

3.    Asian Chili Paste $3.59
There’s nothing quite like the fiery high note of chili paste to give a dish depth and make it more interesting. Look for it in the market with the name Sambal Oelek. Sambal Oelek is unique as a flavoring ingredient because it is typically made up only of chilies with no other additives. Add lime and sugar and you’ve got sweet Indonesian dipping sauce. Add to mayo for an Asian aioli which makes a fab spread on toasted bread with any sandwich filling. Or serve alongside Gyoza (Japanese noodle dumplings).

4.    Whole Grain Mustard $4.50
Move beyond the French’s and explore some more exotic mustard varieties. While there are a variety of mustards, from sweet honey to Chinese to Dijon available to you, Maille has a flavor and texture that adds interest to everything from sausage to deli sandwiches to salad dressings and sauces. And you only need a little. Make your own salad dressing: A dab of mustard, some red wine vinegar, olive oil, and a bit of honey can dress up even the most garden variety salad. Add herbs for variation.

5.    Fresh Ginger Root $1.50
Ginger always seems to get overlooked in favor of its admittedly amazing cousin, garlic. But that’s a shame. Ginger has depth, round edges and an almost citric bite that, as Asian cooks have long known, goes great with fresh and cheap ingredients. Make a ginger dressing by combining ginger with sesame oil and rice vinegar and either mix by hand or in a blender. Add your dressing to a coleslaw mix to make an Asian slaw. Or serve it alongside Ahi Tuna Tartar for the kind of appetizer found in many high-end restaurants, no cooking required.

6.    Risotto $4
It sounds fancy but Risotto takes less than 20 minutes to make and can be a great way to use up leftover vegetables, cheese or even seafood or sausage. Just add about 1/4 cup of whatever topping you like to each serving right before putting it on the plate. Classic combos include mushrooms and Parmesan, sausage and tomato or shrimp and peas.

7.    Greek Yogurt $2
There’s no reason to use plain yogurt when you can get the rich, unsweetened Greek variety instead. Use in dips, cream sauces, roll-ups, and desserts. Combine with mint, garlic and lemon to taste and serve alongside hummus, pita and chopped veggies. You might not think so but Greek Yogurt is also perfect for cooking Indian style yogurt chicken.

8.    Vinegar $1-1.50
Vinegar is cheap but it can transform ordinary root vegetables into taste sensations. Start with the cheapest carrots, beets and onions you can find and make pickles by briefly boiling them, then cooling in ice. Add vinegar and sugar and you’re done.

9.    Eggs $2-4
Okay so even if you aren’t much of a gourmet, you’ve probably got eggs on hand and if not you definitely should. This staple is both versatile and still relatively inexpensive even if you go for the free-range or organic variety. But don’t be confined to serving them sunny side up or scrambled. Go gourmet by poaching them for an Eggs Benedict or Salad Lyonnaise (eggs on a frisee salad with bacon). Eggs can be added to casseroles, used as the binding agent in veggie burgers or make their way into a frittata for a festive Sunday brunch. For a quick frittata, beat 4 or 5 eggs, and then scramble slightly with spinach and mushrooms. Bake in the pan in the oven until solid.

Once you’ve got these ingredients stocked in your pantry, look to sites like GourmetSleuth.com, EzEating.net, or SimplyRecipes for more great ideas on what to do with them.

Don’t wait until you are too old to scale the steps of Chichen Itza to travel. The best time to see the world is when you are young. But if travel seems beyond your means or beyond your budget, you’re going to have to get creative before you get going. Are you in a rut because your current job doesn’t take advantage of your skills? Identify those skills and they can be your passport to a world of adventure.

Techie? Wire a village.

If you have a computer or technology skill set, there may be a non-profit organization that needs you to set up a network for a school system or provide farmers with an internet hook-up, allowing them to search the Wikipedia for farming techniques or shop for better grain prices-in the Amazon jungle or the African plains. Consider getting involved with One Laptop Per Child, a non-profit whose mission is to develop a $100 laptop that could revolutionize how we educate the world’s children. Organizations like Oxfam and Care, plus countless smaller non-profits, are empowering local communities with technology, an effort that can help bridge the digital divide while opening your eyes to the way other cultures work and play. Think of it as the 21st century version of volunteering for the Peace Corps. Check out sites like idealist.org for ideas.

Into Politics or Communications? Staff an embassy.

Our State Department zips sharp-witted Foreign Service Officers and Foreign Service Specialists all over the globe to staff our embassies. These seldom-heralded positions have wonderful perks-diplomatic immunity, anyone?—if you can stand the wait. (The notorious red tape of the State Department and up to one year of training makes this more of a long-term commitment.) The posts, usually two years long, could be in literally any part the world and span a range of fields, from public relations to diplomacy to economics. Speaking a foreign language, particularly an obscure or difficult one, gives you a leg up.

Foodie? Work it on a farm.

Worldwide Opportunities on Organic Farms (WWOOF) can bring you closer to mother earth by placing you at an organic farm where you can learn about organic lifestyles and share more sustainable ways of living. In exchange for a few educational weeks or months living a simple, natural, and-read this–physically challenging life, your host farm will give you room and board. WWOOF is a worldwide network of global farms. Perhaps you’ll find yourself on a rare tropical flora garden that opens to the ocean in Central America or in the tangled olive vines of the Turkish countryside or picking berries in Sweden. There’s a fee to join WWOOF but the terms of the contract are largely left up to the farm and individual, so shop around.

Finance or accounting? Go multinational.

Rather than fear our impending globalization, why not embrace it? Big Brother has a plane ticket for you. Many multinationals know that savvy young things like you want an international career, so they are starting to use their worldliness as an asset. For example, behemoth Price Waterhouse Coopers’ has the EPIC “International Challenge,” which lets you set up an international assignment in your early years with the company-while you’re young and adventurous.

Writer or language junkie? Teaching is a great gig.

As a teacher in rural Japan, I never got over the fact that people were awestruck with me for simply speaking my mother tongue. If you think linguistically, teaching the world’s second language is an enormously lucrative way to travel. But first you will be battered with acronyms; TOEFL, CELTA or TESL teaching certificates are smart ways to give yourself street cred. The foreign teaching community relies on forums and chat rooms to stay connected while on far-flung assignments, which means you can tap into their network easily. Dave’s ESL café will get you started.

Working in another country is a fantastic way to see how your skills can translate into real world opportunities. Follow your bliss and the rest will follow.