The real estate market is the source of many problems for the U.S. economy and things aren't improving much. The U.S. Centus Bureau released new numbers today showing homes sales that inched higher over August's lows, but remained the worst since 1981 in September. Meanwhile, the prices of those houses have hit 2004 levels as sellers continue to accept lower and lower figures to unload their houses.

Home builders have reduced their production to reduce inventory and stabilize prices, but there were still around 394,000 new single family residences on the market at the end of September. At the current pace, it would take just over 10 months to sell through that inventory and turn the economy. The median selling price for a new home fell to $218,400 from $221,900 in August while the mean selling price was up from $263,900 to $275,500.

It is also worth noting that the true price declines are probably even higher than the numbers. Some 65% of homebuilders surveyed by NAHB reported offering customers free upgrades such as marble countertops. Other incentives include paying closing costs and buying down the interest rates. It is also worth noting that the additional sales occurred primarily in the West; the north-eastern US saw a 21.4% drop while the Midwest saw a 5.8% decline.

Unfortunately, the number of unsold new homes, standing at 394,000 at the end of September, remais near historic highs as the number of US home foreclosures added more properties to the market. In the end, these trends will likely take some time to reverse.

The majority of the costs in our lives are household convenience items that we purchase at a gas station or nearby retailer without regard for cost. The first step in reducing these costs is to keep an inventory of everything in your house to know when you're about to run out, so you have time to run to a cheaper outlet without making a special trip. The second step is to know where to shop to get the best deals. This article will address both of these issues to help you save money!

Step 1: Keep an Inventory

When you have to make a special trip for a household items, there are two big costs involved. First, you are forced to spend the gas money associated with driving to and from the store (not to mention your time!). Secondly, you often end up going to more expensive places for the goods, such as gas stations or small convenience stores. These costs can quickly add up despite the fact that they can be easily avoided through planning - just be mindful of everything in your house and the amounts you have left.

Step 2: Shop Intelligently

One great place to save money is your local dollar store. Dollar stores have many household items that can cost substantially more in a larger retailer. Things like laundry detergent, dish washing soap, hand soaps, mops, silverware, plates, cups and other items can be purchased for merely a dollar. These same items can be 100% or more of that price in other retailers. This may not seem like a lot, but when you purchase a lot of these, you are reducing your shopping bill by 100%+! It adds up...

People often do not realize how much they spend on convenience items and those amounts can add up quickly. Following these simple steps can help you save a lot of money!

Consumers are more depressed about the economy than ever before. The University of Michigan's famous Consumer Sentiment Index fell to 57.5 this month from 70.3 just one month ago! The drop is the single largest in the history of the survey as consumers are finding themselves saddled with debt and unable to pay their bills while costs continue to spiral higher.

The same measure averaged 85.6 last year, but began a steep decline as the economy deteriorated. Tightened credit has led to a further decline in the three-year real estate recession that has caused all of the problems. More and more Americans are finding themselves paying a mortgage on a house that's no longer worth as much as they are paying. Many have therefore stopped.

Foreclosures also continue to rise as Americans simply cannot afford to keep making their housing payments. Banks can't afford to foreclose on these houses fast enough as their own problems continue to mount. Investors who funded these mortgages are no longer interested in making loans. And the market has essentially stopped dead in its tracks.

Government interventions have attempted to free up the market by injecting cheap cash that banks can loan to start making higher interest loans again. However, banks remain nervous as consumers continue to default, even with the cheap credit. The two largest institutions, Fannie and Freddie, are both now owned by the government. There's no end in sight.

However, the storm is always darkest before the sun shows. This terrible economic environment has created a lot of opportunities for investors. U.S. stocks are cheap and many great investors like Warren Buffett are finally stepping up to the plate. Meanwhile, housing prices are at record lows for those looking to buy a new house and lending rates will be cheap when the market reignites.

Consumers should focus on settling their debts now while banks are in trouble and eager for any resolution. They should also be looking at acquiring stocks on the cheap and saving for their future. Now may be a time to rebuild instead of a time to mourn...

The Federal Reserve announced that it would double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens. Meanwhile, lawmakers just passed a $700 billion bill designed to purchase toxic debt from troubled banks. But where does all of this money come from? The printers of course!

Unfortunately, not even printing money is free as many countries like Zimbabwe could tell you. The more money you print, the less the money is worth. Simple supply and demand economics. So, while the US is printing all of this money to bailout the financial sector, the value of the dollar will fall as more of them hit the world markets.

A lower dollar value is good and bad news. The good news is that US goods are cheaper for foreigners, which means that exports tend to rise. This is exactly how China's economy grew so fast. The bad news is that foreign goods and raw materials cost a lot more for US consumers, so everything becomes more expensive - bad news with high unemployment and record debts.

So, how can you avoid these problems. Well, one way is to keep your money in inflation protected securities, known as TIPS. These are government bonds that protect your money against inflation. Another way is to invest in foreign assets that may benefit from the cheap prices or even purchase US assets on the cheap yourself (such as US blue chip stocks).

Unfortunately, food prices are likely to continue rising, but with your money protected, it will cost roughly the same over the long run. Meanwhile, investing in cheap US assets now could pay dividends down the road when the economy recovers.