economy

Experts rely on dry statistics such as unemployment figures and the consumer price index to gauge where the economy is going, but there are other less serious ways to monitor our financial state. Even you can get your finger on the pulse of the economy by observing the trends you can relate to. Here are a couple of the weirdest economic indicators:

• Divorce rates: A rise in divorce rates is a good sign for the economy — it means the credit markets are opening and the economy is on the mend. The recession drives people to postpone divorce because of the expensive legal fees and inability to sell their houses.
• Nail polish: It used to be that sales of lipsticks correlated with the economy, but not so much anymore, says Leonard Lauder, Estée Lauder chairman emeritus. Women used to turn to lipsticks during the recession as an affordable pick-me-up, but have now replaced them with nail polish. In fact, sales of nail enhancers have jumped 65 percent since the first half 2008.
• Men's underwear: During a recession, men will skip out on buying underwear. This is one of the most reliable economic indicators, according to Alan Greenspan, the former chairman of the Federal Reserve.
• Hot waitresses: When there is a recession, there are more hot waitresses around due to the lack of jobs that will leverage their hotness. The New York magazine says, "In flush times, there is a robust market for hotness. Selling everything from condos to premium vodka is enhanced by proximity to pretty young people (of both sexes) who get paid for providing this service. That leaves more-punishing work, like waiting tables, to those with less striking genetic gifts."
• Miniskirts and dresses: According to the Hemline Index, when miniskirts and dresses are trending, the economy is apparently doing well. The index was developed by economist George Taylor, and the theory apparently has some credence. I can just imagine the men being slapped for trying to conduct this type of "economic research."
• Online dating: Lonely hearts abound during a recession, and more people take to sites like Match.com when the going gets tough. The site had one of its strongest quarters in 2008 when the recession was at its peak. Experts speculate that misery loves company and people love to seek other people for comfort during tough economic times.

Today, the Supreme Court upheld most of Obama’s healthcare plan, the Patient Protection and Affordable Care Act, by a narrow 5-4 vote. But what does this mean for people like you and me? Here are answers to some of the most commonly asked questions:

When will the law go into effect?

Actually, parts of the plan have already gone into effect. For example, new health plans are required to provide free preventative care for services like colonoscopies and mammograms, and young adults are covered by their family's insurance plan until they turn 26. So parts of the plan have already been implemented, but with this ruling, we'll see more changes to come. And many of the major changes will happen in 2014.

What are some things to look forward to?

Consumers will see a lower cost of medications and more preventative care coverage. You'll also be able to access the new health insurance exchange programs (see video explanation here) which are said to be the healthcare version of online travel companies like Orbitz. Competition among the companies are expected to drive down insurance prices. Other benefits of the plan include more help for people who can't afford insurance, and insurance companies won't be able to deny people with preexisting conditions coverage.

What's this about a fine if I don't get health insurance?

If you aren't covered by insurance by 2014, you need to get it or be subjected to a fine. In 2014, uninsured people will face a fine of $95 or one percent of their income, and in 2015, the penalties are even steeper. This fee is meant to encourage younger people in good health to take up insurance, and the money go towards funding for the older patients and those who aren't in good health. Those exempt from this fine includes people make very little income, certain religious groups, and families who pay over eight percent of their income to insurance premiums even after employer contributions and federal subsidies.

Read on for more.

Rent is higher than ever and rising in many cities. In fact, recent data released by Trulia revealed that rents in May have increased by six percent year over year. But does this mean that you should start hunting for a home to buy? Renting is still a good option in this down economy, and here are a couple of reasons why you should stick to renting:

• Flexibility to move. If something happened to your current job situation or if you find a better opportunity, you won't have a house to tie you down to a geographic location. Although you'll have many factors to consider before making the move, you at least won't have to factor in housing obligations.
• Financial obligations. If you get laid off or if there's an emergency that costs you money you can't afford, you can always easily downsize your living situation and move out to a more affordable place if you're a renter.
• Being your own landlord can be tiresome. You'll be responsible and in charge of maintenance and home repairs, something you generally don't have to deal with if you're a renter.
• No added debt burden. Can you live with an obligation of possibly a few hundred thousand dollars worth of debt hanging over your head for the next few decades? If you can't pay it off, you may be at risk of a foreclosure.
• The economy is still unpredictable. Sure, experts are saying the housing market has hit bottom and it's the best time to buy a home. But there are experts like investing maven Jim Rogers who say that the economy is not recovering; instead another economic slowdown is coming. Rogers also predicts that it will be worse that what we've experienced in the past few years. Are you willing to take that risk?

Of course, you know your situation best, and these reasons to rent may not apply in your case. So do your homework and weigh the risks before you commit to one of the biggest investments you'll make in your life.

If you're frustrated by the increase in rent, you're not alone. Business Insider sheds some light on this phenomenon.

With mortgage rates at record lows and a rental market flooded with previous homeowners, most experts agree that now's the time to transition from renter to buyer.

That's easier said than done.

Today's reality is that consumers left battered and bruised by the recession aren't exactly the most attractive candidates for home loans — especially at a time when lenders are choosier than ever with loan applicants.

RELATED: Setting a Budget Won't Stop You From Overspending After All

The result is a new wave of frustrated renters, says Citi Habitat President Gary Malin. Edged out of the housing market by foreclosure or turned down by lenders, they're left with no choice but to rent at some of the highest rates in years.

In Manhattan alone, the first quarter of 2012 brought the highest monthly rent average since 2007, tipping past the $3,400 mark, according to the brokerage firm's latest data. The city's vacancy rate is hovering just about the one percent mark.

"In Manhattan, in general, the housing market has yet to fully recover," Malin says. "Look at the cost of acquisition and the cost selling. If you don't have a long enough time, you might not get your money out."

Read on for more.

We all know who Warren Buffett is (he's only the third richest man in the world) and we all know about his constant push for heavier taxes on the wealthy. The Buffett Rule, proposed by the Obama Administration last year, is a tax law that is meant to raise taxes for millionaires. For those who need a quick and simple primer, here's a rundown of the issue.

Why call it the Buffett Rule?

Last August, billionaire Warren Buffett wrote an op-ed in the New York Times, which called for action to "stop coddling the super-rich" and start taxing them more. To demonstrate the need to raise taxes, the renowned investor says that he's paying only 17.4 percent of his taxable income, a lower rate than what his secretary is paying.

Buffett proposed the idea of raising tax rates for those who are making more than $1 million and even higher rates for those earning over $10 million. His words spurred President Obama to pitch the Buffett Rule a month later (or perhaps it was already in the works and the timing of the op-ed was perfect), a tax plan that's meant to even out the income equality and hopefully make a dent in our $15 trillion debt.

What does the law say?

The Buffett Rule proposes to raise the tax rate on people who make more than $1 million to $2 million annually and raise rates up to 30 percent for those who make more than that. The idea is that the wealthy should be paying tax rates equivalent to what middle-income Americans are subject to.

Why are millionaires paying less taxes?

Right now, the current tax law taxes ordinary wages up to 35 percent, while capital gains and dividends are at 15 percent. Those who make most of their money through investments have enjoyed a lower tax rate. The new law will include people who make millions on their investments every year.

Read on for more.

Everyone's buzzing about the Facebook IPO, and after hearing about how many billionaires and millionaires the IPO will create, you might think that it's your chance to make money off this cash cow. But first, you need to educate yourself.

What's the deal about IPOs?

Facebook used to be a private company, which means its shares were not sold to the public. Once a firm goes public, it's on the stock market and it sells a part of itself to outside investors who can afford it. The term for going public is also known as an IPO or initial public offering.

Why would a company go public?

A company that sells shares to outside investors can stand to raise a lot of money. Current estimates of the Facebook IPO are at $5 billion. Companies can do a lot with the capital raised — they can use it to pay down long-term obligations, fund new opportunities, and even acquire competitors. Further, initial private investors who wish to exit can now sell their shares to public investors.

Read to find out about buying Facebook shares.

There's always a feeling of confusion when a major retailer goes bust, but what we really want to know is what it means for us and how we'll be affected. American Airlines announced it was filing for bankruptcy this morning, which leaves loyal customers wondering what's going to happen to their miles and if it's going to be harder to book a flight with them. Here's a quick roundup of burning questions you might have:

Will American Airlines go out of business and stop flying?

When a company files for Chapter 11 bankruptcy, it doesn't mean it's going to close shop and disappear. It just means the airline gets time off from creditors to do some financial reorganization. Chapter 7 bankruptcy, on the other hand, would mean that business would close. American Airlines has not filed for that, and there seems to be no plans to do so. Airlines such as Delta, Continental, and United have all filed for bankruptcy and are now stronger for it after taking the time needed during the bankruptcy period to put their books in order.

Can I still use my miles?

Yes, the airline says that the frequent flier program will not be affected, and you'll be able to redeem and use your miles. In the past, airlines that have gone bust, such as Pan Am and Eastern, transferred miles to the airlines that purchased some of their assets.

What's going to happen to my flight?

You don't have to worry about the tickets you currently hold, according to Rick Seaney, the CEO of FareCompare, a company that helps customers find air travel deals online. “Tickets won’t be an issue because of the kind of bankruptcy they’re filing,” Rick tells Time. The airline has also said it will continue to honor tickets and reservations.

Read on to learn how you should manage your miles.

It sounds pretty incredible but President Obama actually reads some of the letters people write to him, according to the Washington Post. Apparently, the head of state reads 10 out of the 20,000 letters sent to him daily and says it's a great way to feel connected to people as well as a good reminder of why he decided to run for presidency. The Post says:

"A few times during his presidency, Obama admitted, he had written a personal check or made a phone call on the writer’s behalf, believing that it was his only way to ensure a fast result. 'It’s not something I should advertise, but it has happened' he told me. Many other times, he had forwarded letters to government agencies or Cabinet secretaries after attaching a standard, handwritten note that read: 'Can you please take care of this?'

'Some of these letters you read and you say, Gosh, I really want to help this person, and I may not have the tools to help them right now,’  the president said. 'And then you start thinking about the fact that for every one person that wrote describing their story, there might be another hundred thousand going through the same thing. So there are times when I’m reading the letters and I feel pained that I can’t do more, faster, to make a difference in their lives.' "

Most of the letters are written by people in very dire financial circumstances. If you're interested in what people are saying, read some samples of the letters here.

Whether you want to voice your appreciation or frustration, here's the address you can send your letter to:

President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Remember to put a stamp on it before you mail it off!