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How the US crisis is affecting everyday Americans

USA is in turmoil as never before; there is an on going economic crisis triggering a recession, then 700 Million-dollar bail out plan that is going to cost the taxpayers their retirement-funds and now bushfires tearing through State of California killing two men and a pet dog.

There's nothing but fear and panic in the United States once considered a safe heaven. As the CNN financial analysts predict the brunt of this crisis is going to be borne by none other than the working class ordinary Americans who have regular mortgages, car loans and credit card loans to pay off.

Therefore, we speak to everyday American people from different backgrounds and cultures to find out how the economic crisis is affecting their lives, personally and professionally and how they are planning to overcome this challenge.

Sidath Samarakoon 27, Project Manager in the Financial Market explains how the economic crisis in US came about.

Can you explain (in layman's terms) how the economic crisis in US came about?

It began when the lending agencies and mortgage companies became ambitious in 2001 and began offering home loans to people who could not really afford them.

There was a sudden drive by the large lending companies to sell home loans to anyone who was interested; they did this with the aim of making quick money through commissions.

Suddenly the ordinary Americans who did not have a 10 per cent down payment or a long history of credit could get a home loan and have easy access to the American dream of owning their home. So people who did not qualify ended up obtaining home loans and becoming home owners within days. But what some of these people were not explained was that they were put on promotional period called Adjustable Rate Mortgage (ARM) where one either paid only the interest or part of the mortgage-repayment.

But when this promotional period ended the home-owners were suddenly required to pay not $3000 a month but $6000 because the full interest was not 3 per cent but 6per cent .And when they couldn't meet these payments it led to foreclosures where the bank auctioned off the house to another buyer.

Auctioning of one house brings down the value of the other houses in the neighbourhood (the comparable value) and suddenly entire neighbourhoods are losing net worth of their houses.

A spicy 'kalu pol maluwa'

This is happening right now in our neighbourhood. At first the banks did not complain because they benefited by the resale of the house.

However when it's been occurring since 2001 and across the country to thousands of homeowners suddenly it created a housing market bubble.

And making matters worse for the first time in history the stock market was vested in the housing market where the investors of Wall Street had bought into housing bonds.

Therefore when the housing market crashed it brought down with it the stock market in a dual explosion.

And as we saw in the past couple of weeks for the first time in history financial goliaths such as Washington Mutual, Indimac and Morgan Stanley went bankrupt creating

Appetixing ' polos Mallum'

panic among people. Because people rely on these financial institutions to give them loans and without loans or credit this society cannot function as it is a credit-driven society.

So how is the crisis impacting the American people right now?

What you have to understand is that US is a credit-driven society. People go on credit to purchase everything from groceries, homes, cars to university courses to everything else. So when these banks stop giving loans to people, people tightens their wallets, lessening their expenditure in the meantime slowing the movement of capital.

It's a recycling process and capital has to keep moving. So right now all my friends and their families have stopped spending and are watching what's going to happen next. the credit crunch is on right now with none of my friends are getting their loans approved, so had we waited to buy a house it would have taken much more time and hassle. But even as it is we watch everyday houses being auctioned off and house-value in our neighbourhoods going down.

What do you think is the solution to this crisis?

The House and the Senate, as a solution have approved the 700-million dollar bail-out plan. However people seem to think that it will be another 5 to 10 years before we come out of this crisis.

Monica Alonco 27, is a teller at the biggest bank in the States - Bank of America, and talks of how the initial panic hit their clients.

"This woman came to our counter and said 'I want my million dollars out now and I will keep it at home where it is safe," recalls Monica the day the market crashed.

"There was a lot of panic amongst our customers but this woman stays in my mind because usually she is nasty to the tellers but that day she was plain upset by the crash," Monica trained at the community college and took on many classes studying computers and banking classes to become a teller at a reputed bank. And today she's been with Bank of America for 5 years and become a Senior Teller. After working in the industry for so long she is accustomed to doing 350 transactions a day with small withdrawals such as $300 by each customer but when the markets crashed there was a sudden change in the behaviour of the clients.

"And this woman was one of them, they came to the bank and began to take their money out, I think they were uncertain and did not trust the banks to keep their money safely." Monica says that it's the first time she has seen this kind of panicky-behaviour in their customers.

Is the crisis affecting you personally?

"Actually I didn't think I will get affected. But recently I moved in with my boyfriend and am starting a new life with him and this is the first time I am sharing my life with another person." So having moved in with her partner Andy, Monica agreed to have a common account so that they could support each other financially as well.

"so we went through the accounts to check whether payments were all done and when it came to credit cards I showed him the 20 credit cards I had and Andy just went in to shock," Monica laughs saying he looked shocked when he saw all 20 of my credit cards I carry with her.

"See, I didn't use anyone of them but when there were special offers I would simply apply for them and get them in case I needed to use them in the future. So suddenly I was having 20 cards," Monica says that she was only going to use if there was a special bargain and not otherwise.

Anyhow when she approached her day-off she was given an assignment by partner Andy, to cut all her cards in to shreds and throw them in the bin.

"We have cut down our expenses in many other ways. We don't go out as much and we try to eat at home more often to save on food and little things like that," said Monica explaining that she hopes the economy will get back to normal so that she is able to get the student loan she wants to finish her Degree in banking.

China has made tremendous progress in poverty alleviation since the country adopted its policy of reform and opening-up in 1978, according to a senior economist at the Food and Agriculture Organization of the United Nations (FAO).

Fang Cheng, speaking in a recent interview with Xinhua at the headquarters of the FAO, said that in the past 30 years there has been a substantial reduction in the number of China's rural poor population.

The number of people living on one U.S. dollar a day decreased from 490 million in 1979 to about 90 million in 2002 in China's rural areas, Fang said.

The country's poverty alleviation made giant strides especially in the period from 1978 to 1984, during which the population living in poverty

Mouthwatering 'Kiri Kos' decreased by about 300 million.

Therefore, it is fair to say that China has made the biggest contribution to the world's poverty reduction drive, said the FAO expert. Fang attributed the great achievements to the sustained economic growth in China and a series of development policies for poverty alleviation by the Government.

The remarkable progress in poverty relief by China was a result of successful agricultural reform, which promoted family-based land contract management and increased the State purchasing price of grain, oil crops and pork, said Fang.

Thanks to the reform policies, the country's agricultural output and income also improved considerably. The per capita income in rural areas increased by 90 per cent during the period from 1980 to 1985.

Science and technology progress and increased investment in public undertakings in rural areas are two of the main driving forces behind China's agricultural development, said the expert.

The advancement of science and technology has significantly boosted the per unit output of grain, promoting corresponding investment in education and infrastructure in rural areas.

Statistics showed that the per unit output of corn, rice and wheat in China rose by 113 per cent, 72 per cent and 204 per cent respectively during the period from 1977 to 2006. Meanwhile, the figure was only 62 per cent, 59 per cent and 67 per cent worldwide during the same period.

The FAO expert also praised China for its important role in keeping food prices stable on the world market.

China, which has long held a policy of remaining self-sufficient in grain production, has become a major factor in stabilising the global grain price, he said.

The total output of grain in China reached 434 million tons in 2006, up 95 percent from 222 million tons in 1977, said Fang, citing a report by the FAO.

Meanwhile, the world's total output of grain grew from 1.123 billion tons to 1.935 billion tons during the same period, an increase of 72 per cent, according to the report.

As the most populous country in the world, China has successfully fed a population making up about 20 per cent of the world's total. The country's significance for the world's grain security is self-evident, Fang added.

The past year has witnessed a soaring global grain price due to oil price hikes and bad climate conditions.

The price of wheat, rice and corn grew by 40 per cent, 48 per cent and 80 per cent respectively during the period from July 2007 to July 2008.

China, however, witnessed relatively stable grain prices which registered an increase of only a little more than 10 per cent during the period, thus playing a positive role in promoting the recovery of the world market, he said.

The expert added that China is still facing many challenges in its fight against hunger and poverty despite all the achievements it has made, including shrinking farmland, climate change, increased grain demand and unbalanced regional development.

ROME, Xinhua

Dutch venue makes clubbing environment friendly

A club where dancers generate power to light the floor, drinks come in recyclable cups and toilets flush with rain water opened in the Netherlands, hoping to lure environmentally conscious clubbers.

Rotterdam's WATT, which is designed to save about 30 per cent on energy and carbon emissions and 50 per cent on water and waste compared to other nightclubs, has included sustainable elements into everything from its architecture to its cafe menus.

"We want to show that sustainability can be integrated into lifestyles, and integrating it into something fun shows that sustainability can be fun," said Michel Smit of Sustainable DanceClub (SDC) consultants, who helped develop the concept.

The club follows another 'eco' club in London, and some restaurants and cafes have billed themselves as sustainable based on their menus and ethical standards to attract an increasingly green-conscious public.

Clubbers tested out WATT's main showpiece, a dance floor on which the disco lights become more dynamic as more people grooved around on it. A meter shows how much power is being generated, making the revellers want to go even wilder.

"When you start dancing, you generate electricity, and it makes the floor come alive.

"The more you dance, the more the floor comes to life," said Daan Roosegaarde, who was involved in its design.

While in most clubs a trip to the toilet will not be a major event the architects behind WATT say they have attempted to create a 'pee experience' as you watch rain water from the roof travel through transparent pipes when you flush.

'Minimal waste' bars serve drinks in recyclable plastic cups, and drinks are stored in big tanks in the basement to save energy through a central cooling system. Food in WATT's cafe is mainly sourced locally and from organic producers.

ROTTERDAM, Reuters

TAJ Samudra total revamp

Taj Hotels Resorts and Palaces which has been associated with Sri Lanka for the past 25 years carried a complete revamp of its product. Proudly showcasing the state-of-art Suites, ultra-modern Executive Rooms, renovated Superior Category Residential Rooms, Latitude - all day dining restaurant, the poolside and now, the swank Fitness Centre and the just completed renovation of the 135 years old Heritage Banquet Block.

According to Area Director (Sri Lanka) and General Manager Saurabh Ratan, "The newest phase of renovation continues Taj Samudra's legacy to create a hotel that is not only a benchmark for the Hotel industry in Sri Lanka but one that is in line with the best of international standards".

In unveiling the new Fitness Centre, Mr. Ratan is confident that the stylish, spacious and state-of-the art gyming is an increasingly important requirement in a health and body conscious society.

Mr. Ratan commented about the recent renovation of the 135-year-old Heritage Banquet Block saying that while protecting the heritage aspect of the Banquet Hall, the interiors are tastefully done in line with the best in class conferencing and banqueting requirements.

The new Fitness Centre is with state-of-the art equipment from US based, global leader in the commercial fitness industry 'Star Trac', the new Fitness Centre offers a superior range of cardio and strength equipment aimed at a wholistic workout for weight-loss and wellness.

The Cardio Section includes superior feature treadmills with personal viewing TV screens to enable the user to watch their favourite channels or to plug in their I-pood.

The newly renovated poolside with its lush surroundings as well as steam, sauna and Jacuzzi facilities are available for a more invigorating experience. Tennis, squash and table tennis courts are also available.

The heritage banquet building

Showcasing a legacy of over 135 years The Heritage Banquet Block is depictive of the grandeur and style of the colonial era in old Sri Lanka. The recent renovation has retained the artistic value of this architecturally glorious building and created striking enhancements through mood lighting to accentuate the gold, copper and black details of the hall.

Lux Ruwathi Yuwathi concludes with star-studded entertainment

The much awaited grand final of the Lux Ruwathi Yuwathi TV talk show attracted thousands of viewers across the country in its recently concluded entertainment-packed season finale.

The episode, which aired exclusively on Swarnavahini, in addition to crowning the first Lux Ruwathi Yuwathi 2008 from the make over segment of the show, also included an unforgettable line up of the hottest entertainers in the local music industry.

The Lux Ruwathi Yuwathi talk show in just one month of airtime added new spark to TV entertainment for local audiences.

The show, aside from shining the glam light on 16 lucky contestants from its make over segment, also welcomed a star-studded panel of guests and inspiring personalities to exchange their views and ideas with audiences on various topics that affect the Sri Lankan woman.

On the inspiration behind the show, Ramani Samarasundera, Director Marketing -Personal Care of Unilever Sri Lanka Ltd, said "Lux Ruwathi Yuwathi was created by Unilever to redefine the scope and many facets of the beauty of the Sri Lankan woman - beauty on the outside as well as on the inside.

"As a result the show had various components to it - the talk show component was a forum which was created to provide a space for young women across the country to share their views on different topics that had an impact on their lifestyles such as careers, relationships, financial independence etc.

"The make over component focused on outer beauty and gave one lucky girl every week the opportunity to rediscover their own beauty and confidently flaunt their personalities by getting the ideal look and simple beauty care tips from the connoisseurs of beauty and fashion, Ramani Fernando and Michael Wijesuriya.

"In this segment, the girls who garnered the most number of SMS-polled viewer votes each week for her look qualified for the finals and the recently concluded season finale was aimed at selecting the overall winner among these finalists and to crown the 'Lux Ruwathi Yuwathi 2008."

The final episode featured all 16 finalists from the Lux Ruwathi Yuwathi Queen competition parading their star-making looks.

The finalist who ultimately donned the Lux Ruwathi Yuwathi 2008 crown was K. G. Chammi Niluka, who received 55 per cent of the votes polled, and was awarded a cash prize of Rs 100,000 and a valuable gift pack courtesy of Lux, along with an exquisite tiara and set of jewelry especially designed by Stone n' String.

In second place was Heshanthi Ediriweera with 25 per cent of the votes, while third place was awarded to Iresha Prasadini, each of whom respectively received cash prizes of Rs. 50,000 and Rs 25,000 courtesy of Lux in addition to a bouquet of flowers and a Lux gift pack. The remaining participants were also awarded valuable gift packs courtesy of Lux.

On her victory as the first Lux Ruwathi Yuwathi 2008, Chammi said, 'I am absolutely overwhelmed by this victory. I knew I had received an incredible make over that truly brought out the best in my personality and inspired me to appreciate everything that makes up who I am, but I still can't believe I won because all the girls here today look so amasing.

I'll never forget this experience and the entire competition - there are so many things I learnt on this show; things that make up the true beauty of a woman, and not just in terms of looks - things that define the quality of your life, things I had taken for granted or even forgotten - things that make me proud to be a woman.

"I learnt how much of a fulfilling experience it can be to really embrace your femininity and how much fun beauty care is - thank you so much Lux for this experience!'

The entire episode assembled a stellar line-up of exhilarating performances and celeb-stacked appearances. Fans had plenty to buzz about as Bathiya and Santhush with Umaria and Shihan Mihiranga thrilled viewers with a collection of their most adored songs.

In addition, as a surprise bonus, first round winner Iresha also serenaded the audience with her rendition of a classic Sinhala ballad. Other special guest appearances included Akalanka and of course, Ramani Fernando and Michael Wijesuriya, the gurus of the fashion and beauty care industry who combined their expertise to give the participants their sensational new looks.

On the success of the landmark TV show, Wathsala Aluthgedera, Lux brand manager, said 'Lux Ruwathi Yuwathi was meant to inspire women across the country to confidently project their personalities and embrace their identities with unapologetic femininity."