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News and Blogs: Monday, November 10, 2008

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Circuit City files for bankruptcy. This store is the latest victim of the current economy. You can look through the remaining stores, but I don’t think this bankrupcty will lead to fire-sale prices on electronics as we head into the holiday shopping season.

Is It Time to Have a Money Talk, Child to Parent? Will you have to bail out your parents? Finance is always a difficult topic across generations within the same family. This New York Times article includes a sample letter you can use to help approach the subject with your parents.

Reinsuring A.I.G. The Treasury Department added $40 billion to the bailout for A.I.G., bringing the total assigned to this company $150 billion. In return for the additional $40 billion, the government will own a stake in the company. A.I.G. will also benefit from a lower interest rate on the money it is borrowing from the Federal Reserve.

Fierce Financial Tips: The Carnival of Personal Finance #178, Struwwelpeter Edition. Today’s edition of the Carnival of Personal Finance focuses on a strange collection of 19th century children’s poetry from Germany! In addition to the articles featured as Editor’s Choice, start with What Has Changed in Personal Finance, Living Frugal With Other People’s Money, and The Importance of Doing What You Know You Should.

News and Blogs sponsor: Open an account with optionsXpress for a virtual $5,000 portfolio to test your market-timing skills.

Updated September 2, 2011 and originally published November 10, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 4 comments… read them below or add one }

avatar Sun

Flexo: It’s still Monday, November 10, 2008 :)http://www.thesunsfinancialdiary.com/

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avatar Luke Landes ♦127,480 (Platinum)

Sun: I was getting ahead of myself, apparently. Thanks!

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avatar Aya @ Thrive

It gets me restless to think about big stores like Circuit City filing for bankruptcy. It was concerning when Starbucks started closing stores, but then again, they had too many in the first place. I wonder how Best Buy is holding up, the factors that went into CC’s decline must be affecting them too.

The NYTimes article is interesting; I always feel like openly discussing finances in tough times is taboo in the family even though its so necessary to talk it out. This might be one reason why many young people drown in credit card debt. In any case though, both kids and parents should acknowledge the crunch together and help each other in any way possible.

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avatar Rassah

My capstone financial research project at my University in the second semester of 2007 (Sep to Dec 2007) was on Best Buy. One of the components of the project was our company’s competitors, which included heavy research into Circuit City. From what we found out, Circuit City was in deep financial trouble, with decreasing sales, since way back then. They were doing so bad, in fact, that one of the possible strategies for Best Buy was to buy up a bunch of Circuit City stores and convert them to Best Buys, or buy Circuit City outright. That Circuit City went bankrupt is no surprise at all, considering their situation, and it’s difficult to say whether they would not have went bankrupt even if the economy was still stable.
Best Buy, on the other hand, was doing exceptionally well, and although I am sure they were hurt by the economy just as everyone else, I’m sure they will continue to be strong.

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