More Financial Reality

March 29, 2010

by Al Doyle

Things that would have been considered unimaginable a few years ago are now just part of the normal mix in the ongoing saga of economic woe. The story of Jim Kennedy is a prime example.

After being laid off from his six-figure job, the former corporate developer lost his Newport Beach, California condo in a foreclosure and joined the ranks of the homeless. One perk from Kennedy's former life has enabled him to stay afloat and keep a roof over his head.

As a millionaire of sorts - he accumulated more than 1 million frequent flyer and rewards points while employed - the 46-year old Kennedy has been using the miles to find lodging and stay off the streets. Kennedy's bed for the night could be anything from Motel 6 to higher-end chains. It all depends on where he can get the best deal with his points.

Since he lives so close to the financial edge, Kennedy prefers hotels that provide a free breakfast. His laptop allows Kennedy to apply for jobs, and he estimates that the accumulated mileage will keep him going for five months. Check HomelessThomOC on Twitter to keep up with Kennedy's nomadic life.

It isn't just laid-off executives who are feeling the pain. This is an equal opportunity depression for Americans at all income levels. Just ask the 465 production workers who were laid off last week at the Whirlpool plant in Evansville, Indiana. The entire facility will be shut down by June, and 1100 jobs are being sent to Mexico.

Bloomberg News reports that the unemployment rate rose in 27 states, remained the same in 16 states and decreased in just seven states in February. Mississippi was the biggest loser, as the jobless rate rose from 11 percent to 11.4 percent. Michigan has the nation's highest unemployment rate at 14.1 percent, but government numbers vastly understate the problem. By some estimates, the real unemployment rate in Detroit exceeds 40 percent.

Personal income declined in 42 states and rose in just two states in 2009.

Unemployment rates in 363 of the 372 U.S. metropolitan areas (defined as a single city or several smaller towns and surrounding areas with a total population of 100,000 or more) rose in January. Three California metro areas - El Centro, Merced and Yuba City-lead the pack with the highest percentage of unemployed workers.