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Round-Up: Economic News

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Illinois

[posted by Mike Murray]

* Credit cards holders shocked to see interest rates skyrocket, limits plunge

Four former employees of MBNA, now owned by Bank of America, told AFFIL that they were given financial incentives to drive customers deeper into debt; offered only the highest interest rate on cash advances, even when customers qualified for a lower rate, and were trained to “sell debt” through balance transfers that increased the cardholders’ indebtedness.

A Bank of America spokeswoman said it has no such practices.

Experts warn that canceling or taking out rage on your credit card can backfire because canceling the card will cut your debt-to-available credit ratio and your credit score.

* ‘Back to school’ crucial for retailers, parents

Deloitte’s recent survey showed that 64 percent of respondents planned to spend less on back-to-school items, compared with 71 percent in 2008. And four in 10 planned to cut their spending by more than $100.

The top reasons for those cuts: concerns about the economy, recent job losses, efforts to save more money and pay down debt. Because different school supplies are often a necessity each year, people are cutting back primarily on clothes and shoes.

* Hartmarx successfully sold

Hartmarx, the 125-year-old Chicago-based manufacturer of men’s suits that outfits President Obama, was sold today [Friday] to London-based Emerisque Brands and will be headed by Ajay Khaitan, Emerisque’s founder who has been instrumental in turning around brands such as Eveready and Lee Cooper.

* After massacre: ‘No one came’

As jury selection in the trial for the second man accused in the mass murders at a Palatine Brown’s Chicken gets under way, the company’s co-founder told the Sun-Times the notoriety surrounding the crime had such an adverse effect on the business, he was forced to close 60 of 100 local Brown’s Chickens within the first 2½ years following the slayings.[…]

Portillo said sales at all his restaurants dipped 35 percent just months after the seven victims’ bodies were discovered in the suburban restaurant’s cooler and walk-in refrigerator.

* Rezko’s foreclosed mansion on auction block today

The auction is scheduled for 11 a.m. at Intercounty Judicial Sales, 120 W. Madison St. in the Loop. It’s estimated the home will go for about $4.3 million.

* Is advertising on Bears practice jersey just a start?

posted by Mike Murray
Monday, Aug 10, 09 @ 10:24 am

Comments

earlier in the year didn’t gov quinn propose to do away with sales taxes for parents purchasing back- to- school related items for their children?

Whatever came of that?

Comment by Will County Woman Monday, Aug 10, 09 @ 11:33 am
I think the proposal was to have a weekend/day long tax holiday like some other states are implementing. That idea is dead in Illinois, at least for 2009.

Comment by Obamarama Monday, Aug 10, 09 @ 12:58 pm
Sorry WCW I mistyped: Quinn proposed a 10-day tax holiday but it never gained any ground with the legislature. The earliest we could see one is the next regular legislative session.

Comment by Obamarama Monday, Aug 10, 09 @ 1:03 pm
thanks for the update obamarama.

Comment by Will County Woman Monday, Aug 10, 09 @ 3:40 pm