2 Unusual Things Affected by the Financial Crisis

 It’s hard to find something not impacted by our current financial crisis. Here are 12 examples of what the recession means for specific things, from Spam to sex addiction 1.

1. Spam
It looks like meat, it tastes like meat, but it’s a far cheaper substitute for meat. It’s Spam! And it’s booming. Though Hormel’s share price has fallen with the overall market, Spam sales are soaring as the economic crisis leaves consumers strapped 2 for cash. Interestingly enough, Spam, the “crazy tasty” mix of ham, pork, sugar, salt, potato starch 3 and a sodium 4 nitrite, was invented during the Great Depression and became a staple 5 for Allied 6 troops overseas in the 1940s.
2. Marriage and Divorce
Breaking up is hard to do, especially in this economy. While it may be too early to know the impact of the crisis on divorce rates, it appears divorces may have slowed down since the financial crisis began. That’s because despite most arguments being over financial issues, it may just be too expensive to pay the legal fees of a divorce and support two households. In fact, during the Great Depression, divorce rates dropped sharply, though they picked back up immediately thereafter.
3. Recycling
The plunge 7 in commodity prices has taken a toll 8 on recyclers. In fact, the whole movement may come to a halt as oil and metal prices fall. Used newspaper, used cardboard, and scrap 9 metal prices have also seen a drop, partially 10 due to dwindling 11 home construction and slower automobile 12 production. Some recyclers are closing their doors, and in the UK entire city councils are abandoning their recycling efforts, as they are no longer economically feasible.
4. Psychics 14
“There is no rhyme or reason to the way the market is trading,” says a personal trader. “When conditions are this volatile 15, consulting a psychic 13 can be as good a strategy as any other.” Psychics, astrologers, palm readers and “professional advice-givers” say business is booming as clients come to them seeking financial guidance. Clients will typically pay $75 to $1000 for an hour’s worth of insight!
5. Holiday Parties
Just as you suspected, companies are cutting back on their holiday galas. ABC News announced the cancellation 16 of its annual celebration. American Express did the same and then some – announcing the cancellation of 2009’s celebration as well.
But what about the caterers? 56% of party planners say that their corporate 17 holiday party numbers will be off more than 10% this year compared to last. They’re scrambling 18 to come up with innovative 19, more somber 20 types of gatherings 21 like luncheons 22, pot-lucks, and receptions rather than galas, caviar, and glam.
6. Used Car Sales
The used car business is flourishing! Specifically, used car companies that offer buy-here/pay-here financing for lower credit individuals who have been locked out of traditional lending.
But if used isn’t your thing, it may still be a decent time to buy new. That’s because even steady growth car makers 23 like Honda and Toyota have seen 24% and 32% declines, respectively. Car dealers 24 are desperate to get rid of inventory 25 and are offering invoice 26 and below invoice prices. Look for dealers that have a lot of inventory, because they’ll likely offer the best deals.
7. Iceland Tourism
Looking for a good holiday or spring trip? Look to Iceland!
Once an economic success story, this small country is now, well, bankrupt. If you were attune 27 to Fannie and Freddie and the big Wall Street break-up, you may have missed Iceland’s fall. Its three largest banks were oversized and highly leveraged 28, and seemed ready for collapse 29 in early October. Iceland’s currency, the krona, is essentially 30 valueless, and foreign trade has come to a halt. Luckily, the IMF and its Nordic neighbors have stepped in, lending $2.1 billion and $2.5 billion respectively to help the country recover.
But tourism appears to be on the rise. Airfare search engines report a 400% increase in Iceland flight searches. A recent search of round-trip flights from New York found tickets at a record low of $471.
8. College Endowments
Ivy 31 League schools aren’t immune to the financial crisis. Since many college endowments are invested in alternative asset classes, which have lost value, they’re seeing unprecedented 32 losses. Many college and university endowments are projected to have decreased by 30% this fiscal 33 year. For Harvard, that may mean an $11 billion drop.
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That may mean a decrease in financial aid – especially because lenders can no longer sell their securitized loans in the secondary market to get new money to offer new student loans. Despite Congress’ Ensuring Continued Access to Student Loans Act of 2008, which authorizes 34 the Education Department to buy federal student loans from education lenders for the 2008-09 and 2009-10 school years, there’s a chance financial aid may fall short.
9. Lipstick 35 & Hosiery Sales
The Lipstick Indicator 36 is an economic theory proposed by Leonard Lauder, the chairman of Estée Lauder Companies. The theory states that a direct relation exists between rising sales in tubes of lipstick and a falling financial market – the worse the economy, the more women indulge in small purchases, like $10 tubes of lipstick. There are conflicting reports as to whether Lauder’s theory is holding up this downturn. Perhaps hosiery sales will supplant 37 lipstick as the indicator of choice. Overall hosiery sales rose 2.3% this year, with Spanx seeing a 77% increase in sales compared to last year.
10. NASCAR
Very few sports have been hit harder by the economic crisis than NASCAR. From ticket sales to souvenir sales to team sponsorship from large companies, racing 38 is reeling. That’s because an average NASCAR team relies on corporate sponsors for 80% of its budget. That’s four times the percentage of an NFL franchise’s budget. And many of those corporate sponsors, including the Big Three – GM spent $578M in sports advertising 39 in 2007, including NASCAR – are facing high-profile hard times of their own. As a result, some NASCAR teams, including Chip Ganassi Racing and Dale Earnhardt Inc., have merged 40 in an attempt to attract corporate sponsors.
11. Personal Maintenance
According to the International Health, Racquet and Sportsclub Association, gym memberships have been on the decline since 2007. There’s no sign that these former gymrats are instead opting 41 for cosmetic 42 surgery – 53% of plastic surgeons of the American Society for Aesthetic 43 Plastic Surgery say business has slowed.
12. Sex & Sex Addiction
Will the financial crisis spark a baby boom? It just might. According to the Telegraph, sales of sex toys, pregnancy 44 tests, maternity 45 clothes, and baby equipment are soaring. But that’s not the only place sex may have increased. Jonathan Alpert, a Manhattan psychotherapist, has seen a big jump in the number of Wall Street workers who seek help for the sex addictions 46. Apparently 47, the economic crisis has sparked “maladaptive coping mechanisms” among bankers, according to Jodi Conway, a sex addiction therapist in New Jersey 48.