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February 27, 2008
Erica’s News Note: The money’s drying up!
Posted: 09:19 PM ET

The euro has finally made it past the $1.50 mark, and I’m not too happy about it. Sure, it’s great news for my sister who lives in France and is paid in euros. Not so stellar for the rest of the family on this side of the pond. I remember back in the days of the French franc when the tables were turned; during one visit, it was something absurd like 6+FF to the dollar. Ahhh, the salad days…

Add the euro news to ever-rising gas prices ($4 this summer, eh? Kids, we’re going on a picnic for vacation, and we’re walking there; it’s in the backyard), the drop in home sales (anyone in the market for a great loft in Atlanta?), and those depressing holiday sales numbers and you’ve got a nasty economic combo. I always try to focus on the positive, but it’s tough with this one. I can only hope that we – and I mean all of us as a country – learn that living within our means (read: not on credit or home equity loans) isn’t the worst way to be. Trust me, I’ve got some work to do on my end. 

Fed Chief Ben Bernanke didn’t make things sound much better today on Capitol Hill; he, too, is concerned. Beef up on his take here:

And speaking of cutting back… the drought in Georgia is getting some more ink. Remember, I just left Atlanta (that loft is still available), where at one point last fall it seemed like the world was 90 days from ending. We were told we were on the verge of running out of H2O. Turns out, the situation is bad, but wasn’t quite the doomsday scenario it originally seemed to be.

Fast forward to today, and a little “wet kiss” from the mayor of Chatanooga, TN: 2,000 bottles of water delivered to Georgia lawmakers. Last week, those same Georgia lawmakers passed a resolution stating a survey done nearly 200 years ago mistakenly put Georgia’s northern line just shy of the Tennessee River. They want the map redrawn, which would give Georgia access to said river, and lots of the wet stuff. You can bet the Tennesseeans aren’t exactly volunteering to comply… But, hey, they did bring Georgians a little refreshment to tide them over. 

If the water delivery can’t bring everyone together, maybe our favorite dancing prisoners can.  They’re back in tonight’s Shot, with some new moves you won’t want to miss. See you at 10!

-Erica Hill, 360° Correspondent

13 Comments
Filed under: Economy •  Erica Hill •  Housing Market
13 Comments
Monique, Livorno, Italy   February 27th, 2008 10:09 pm ET

I’m with you Erica, I live in Italy and work on a US Army Base as a civilian. We were able to choose whether to be paid in Dollars or Euro’s and I guess I chose wrong! I wonder if I can go back and change my decision :-)

Annie Kate   February 27th, 2008 10:16 pm ET

Erica

Sorry not interested in your loft. I hope you find a buyer soon though.

If Georgia has accepted the state line for 200 years I don’t think Tennessee is going to jump through hoops to let Georgia have the original border. After 200 years of Georgia accepting the state line the way it is now, survey or not I would think that acceptance would imply acceptance of that border.

The people living in the area Georgia is claiming want Georgia to have it - Ga. taxes are a lot higher than Tennessee taxes and this state line move would not benefit the existing residents at all. Besides as a native Tennessean I can attest that a lot of Tenn. natives would prefer to stay in Tennessee than be “annexed” to Georgia.

Hopefully, something can be worked out so the border stays the same as its been for 200 years but Georgia gets access to some of the water they need.

Annie Kate
Birmingham AL

Jamie   February 27th, 2008 10:17 pm ET

Erica…. how many countries use the euro currency…just curious?

Greg from Florida   February 27th, 2008 10:18 pm ET

Isn’t the state of the U.S. dollar very sad and scary nowadays? It used to be so strong and now, in addition to being weak, all I see from the President and Congress are shoulder shrugs.

By the way, I think Erica Hill is the most beautiful woman on television.

James, Fairfax, VA   February 27th, 2008 10:19 pm ET

Due to the rise of the euro, I have already canceled my Thanksgiving trip to Paris. It’s too expenseive to even think of going to Europe so we are planning to spend our dollars in America. I miss Europe but it’s not worth paying 50% more for each and everything you buy from an espresso to a museum ticket to a pizza margherita. Europe is not worth the 50% premium. Nothing is going to change so no Europe for a few years. It’s great that Europeans are able to come here and enjoy America. That will make a difference in the world for the future.

Yariel Diaz   February 27th, 2008 10:21 pm ET

Living within our means (not using credit cards) is a very hard for every American to get used to. This is a country that since the first credit card, has been charging away. I am definitely one that is paying still for vacations taken last year on credit cards. These high gas prices are not helping anyone. I do realize that in the U.S. we have been spoiled with lower gas prices than overseas but we, as Americans, have been accustomed to such prices and have seen that change so much in just the last two years. It is incredibly sad and disheartening.

By the way, Erica, I think you are VERY witty and you and Anderson are too cute together during the show. You give the public the info while making it interesting and not dull. Thank you!

Durran Felton   February 27th, 2008 10:33 pm ET

Erica, i agree. The dollar being so weak is disheartening. I do a lot of business over seas, therefore I am financially benefiting from the weak dollar, but for my fellow countrymen I know it is hurting them. With all that said, we have to put the economy at the forefront of this presidential election. We MUST vote democrat (Obama Prefferably).

Rhiannon Rede   February 27th, 2008 10:56 pm ET

Hey, Erica, I know it’s off topic, but I want to say how great it is to have you on set with Anderson! You are the best looking co-anchors in the media!
Little Rock, AR

Stephanie, NJ   February 27th, 2008 11:09 pm ET

Bernanke worries me in his commentary. I wish he would just admit what so many other economists have already stated - we’re in a recession. Maybe hearing the R-word would give people the motivation they need to avoid excessive credit.

As to your loft, I actually just got a job offer in Atlanta, so I may need to keep it in mind!

Jon Higgins   February 27th, 2008 11:19 pm ET

I am suprised that the millions of drivers in the United States aren’t complaining about the large profits companies like Exxon-Mobile made last year. Now gas prices are expected to rise again? How much more of our money do they need?

Terri   February 27th, 2008 11:22 pm ET

Erica, I agree with you about the fact that we Americans need to learn to live within our means.. I am still working on that.. (it’s not easy) but it is great advice.. BTW. I also ejoy the prisoners dancing.. nice glasses too.

You Know Me   February 27th, 2008 11:28 pm ET

Why would make a difference to your sister since she’s paid in Euros and is spending in Euros?

And isn’t the weaker dollar having a beneficial effect on the balance of trade?

Lorie Ann   February 27th, 2008 11:43 pm ET

I think the economy is hurting more from inflation than recession. But I won’t be surprised that the day after the general election we’ll hear the economy is very bright. We have problems in this country, but elections tend to magnify every single speck of them. Hopefully, the future will be a prosperous one for all.

Lorie Ann, Buellton, Calif.

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