Economy Puts Squeeze On Education Promises by: Larry Abramson

• pink slip: an American term that refers to being fired or laid off from one's job
• mandate: a command or authorization to act in a particular way on a public issue given by the electorate to its representative
• truancy: the act or condition from being absent without permission (ditching school)

State budgets all across the nation are experiencing problems in their budget. This is causing states to take drastic measures with the education budget. In California alone 22,000 teachers received pink slips. Even though many districts try to prevent this by cutting down on bottled water, not buying new text books, making class sizes bigger, and all teachers taking a pay cut it still is an issue. In California unnecessary mandates are costing the state $400 million. For example the truancy notification requirement. The Governor is considering suspending these mandates to get schools through this very tough school year. In Florida schools are losing a lot of money because an amendment was passed to the state constitution that puts a limit on class size and requires for a new teacher to be hired. Other states have to cut down on scholarship programs. Education and schools are receiving budget cuts because states can't think of other ways to save money. States feel that some on the things in the budget cut are unnecessary so they take those things out, but the difference is not too great so they are forced to cut on things that are helpful.

I really don't think that education budgets are going to get better anytime soon. We are experiencing too many economic hardships at the moment and the advocating to save education is not being heard. I don't think this problem will be solved until the year 2017.

Low Rates Keep Savers Suffering For Borrowers' Boon by Marilyn Geewax

• Federal Reserve Chairman: is the head of the central banking system of the United States.The chairman is the "active executive officer of the Board of Governors of the Federal Reserve System.
• Certificates of Deposit: or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions.
• credit markets: also known as the debt, fixed income, or bond market is a financial market where participants buy and sell debt securities, usually in the form of bonds

This article is explaining why interest rates are so low. And that is because since the financial crisis hit in 2008 the credit markets froze up leading the federal reserve to significantly lower interest, in order to bolster the economy. This was especially intended to help in the department of housing sales. Providing lenders with a low pay back rate. Unfortunately this plan does present a downside. Savers who are purchasing CD's. They are current earning an average of 1.5% interest, or 3% interest on an investment of 5 years. This is causing investors to feel cheated. However the author of this article predicts that interest rates will jump up next year.

I predict that interest rates aren't going to rise enough next year for investors to be pleased. Also I think that the stock market is going to begin to gain a lot more activity from all these investors who are unhappy with the productivity of their money in the credit market.