lowered interest rate by a 1/2 %

The Federal Reserve Bank lowered a key interest rate by a half a percentage point Wednesday in the latest attempt to restore confidence in an economy hit by the worst financial crisis in decades.

Major banks responded by lowering the prime rate, the interest rate they charge their best customers, to 4% from 4.5%.

The lower rate will affect some consumer loans, including auto loans, home equity lines of credit and some mortgage loans and credit cards.

The central bank reduced the federal funds rate, the interest banks charge each other on overnight loans, to 1%, the lowest its been since 2003.

The cut was the second in the funds rate this month. The Fed slashed the rate by a half percentage point in a coordinated move with foreign central banks on Oct. 8.

“It was not a big surprise,” said Dean Croushore, associate economics professor at the University of Richmond. “The markets were anticipating it.”

Since rates are already low, the reduction was more of a psychological boost, Croushore said. “People have to get more confidence that the economy will turn around eventually.”

The injection of funds into banks from the government and the unwinding of complicated securities will have more long-lasting affects on the economy than the rate cut, he said.

The Federal Open Market Committee, in its statement yesterday, said the financial turmoil is likely to curtail consumer and business spending.

“The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” according to the statement.

The Fed also noted that growth might not be as good as previously expected and a lot of uncertainty remains in the outlook, said Christine Chmura of Chmura Economics & Analytics in Richmond.

The expectation is the Fed will reduce the federal funds rate by another half a percentage point when it meets again Dec. 16, Chmura said.

The last time the rate fell below 1% was in 1958, when Dwight D. Eisenhower was president.

“A reduced rate takes nine months to a year to filter through the economy,” Chmura said. “Most economists expect the recession to last through the third quarter of next year.”

Over the past 13 months, the Fed has cut the federal funds rate from 5.25% to 1%. “It has been very aggressive in easing 1/8rates3/8 and that should have some impact on the economy,” Chmura said.

The Fed’s action should help keep adjustable rate mortgages low, notably those tied to Treasury rates, she said.

People buying cars also should see lower interest rates, although credit is more difficult to obtain. “Those with good credit should be able to make purchases at lower rates,” Chmura said.

The stock market responded by bouncing up and down yesterday, although not as wildly as in previous days, before two of the major indexes wound up slightly lower.

amendments you'll see on the Local ballot

Below is a list of all the amendments you'll see on the ballot. Everyone will vote on the three statewide amendments. Horry County residents will also vote on the sales tax question.

SOUTH CAROLINA AMENDMENT 1

Must Section 33, Article III of the Constitution of this State be amended so as to delete the provision that no unmarried woman shall legally consent to sexual intercourse who shall not have attained the age of fourteen years?

Yes

No

Explanation of Above:

This amendment deletes the section of the Constitution which says an unmarried woman must be fourteen years old or older in order to consent to sexual intercourse. Deleting this section would allow the state legislature to set the age of consent. Currently, the state legislature has the age of consent set at sixteen for most cases.

A "yes" vote would delete the section from the Constitution and let the state legislature set the age of consent.

A "no" vote would leave the section of the Constitution in place.



SOUTH CAROLINA AMENDMENT 2

Must Section 16, Article X of the Constitution of this State relating to benefits and funding of public employee pension plans in this State and the investments allowed for funds of the various state-operated retirement systems be amended so as to provide that the funds of any trust fund established by law for the funding of post-employment benefits for state employees and public school teachers may be invested and reinvested in equity securities subject to the same limitations on such investments applicable for the funds of the various state-operated retirement systems?

Yes

No

Explanation of Above:

"Post-employment benefits" are benefits, mainly health insurance, provided to eligible state government and school district retirees.

To comply with a change in accounting standards, the state has created trust funds to pay for these post-employment benefits. This amendment relates to how the money in these trust funds may be invested.

A "yes" vote would give the state government the option to invest these funds in equity securities (stocks).

A "no" vote would mean that state government is not allowed to invest these funds in any kind of equity securities (stocks).



SOUTH CAROLINA AMENDMENT 3

Must Section 16, Article X of the Constitution of this State relating to benefits and funding of public employee pension plans in this State and the investments allowed for funds of the various state-operated retirement systems be amended so as to provide that the funds of any political subdivision of this State that have been set aside for the funding of post-employment benefits for the political subdivision's employees, including those invested in independent trusts established for that purpose, may be invested or reinvested in equity securities of the type permitted for investment by the various state operated retirement systems, as provided for by the General Assembly?

Yes

No

Explanation of Above:

This amendment is the same as Amendment 2 except it applies to local governments' post-employment benefits (instead of the state government's post-employment benefits).



EDUCATION CAPITAL IMPROVEMENTS SALES AND USE TAX ACT REFERENDUM FOR HORRY COUNTY

Must a special one percent sales and use tax be imposed in Horry County for 15 years with the revenue of

the tax used to pay, directly or indirectly, the cost of some or all of the following education capital

improvement projects in Horry County:

(1) 80% of the revenue of the tax shall be used for the following projects of the School District of

Horry County:

(a) Future Capital Projects

Additions/Renovations including equipment for existing facilities:

Additions/renovations to, and equipment for, all 26 elementary schools

Additions/renovations to, and equipment for, all 10 middle schools

Additions/renovations to, and equipment for, all 9 high schools

Additions/renovations to, and equipment for, all academies and education centers

Additions/renovations to, and equipment for, the Aynor Conway Career Center

Constructing and equipping of new facilities:

15 new elementary schools

3 new middle schools

3 new high schools

Facilities to accommodate innovative curriculum and academic programs

Facilities jointly owned and/or operated with other educational institutions in the

County

Athletic facilities improvements at 7 high schools

Land acquisition

Purchase land for new school facilities

(b) Current Capital Projects

Additions/Renovations including equipment for existing facilities:

Additions/Renovations to, and equipment for, Aynor Conway Career Center, Aynor High

School, Carolina Forest Middle School, Carolina Forest High School, Conway Education

Center, Conway High School, Conway Middle School, Conway Primary School, Daisy

Elementary School, Forestbrook Elementary School, Forestbrook Middle School, Green

Sea Floyds Elementary School, Green Sea Floyds High School, Lakewood Elementary

School, Loris High School, Midland Elementary School, Myrtle Beach Elementary

School, Myrtle Beach High School, Myrtle Beach Intermediate School, Myrtle Beach

Middle School, Myrtle Beach Primary School, North Myrtle Beach High School, North

Myrtle Beach Intermediate School, North Myrtle Beach Middle School, North Myrtle

Beach Primary School, Socastee Elementary School, Socastee High School, South

Conway Elementary School, St. James Elementary School, St. James Middle School,

Waccamaw Elementary School, and Whittemore Park Middle School

Constructing and equipping of facilities:

Academy for Arts, Science, and Technology, Academy for Technology and Academics,

Aynor Elementary School, Aynor Middle School, Black Water Middle School , Burgess

Elementary School , Carolina Forest Elementary School, Carolina Forest High School,

Conway Elementary, Elementary for Carolina Forest Area, Forestbrook Middle School,

Homewood Elementary, Kingston Elementary, Loris Elementary School (including land),

Loris Middle School, Myrtle Beach Elementary School, Myrtle Beach Middle School,

North Myrtle Beach Elementary, North Myrtle Beach Middle School (including land),

Ocean Bay Elementary School, Ocean Bay Middle School, Pee Dee Elementary, Seaside

Elementary School, and St. James High School

(2) 13.3% of the revenue of the tax shall be used for the following projects of Coastal Carolina

University:

Construction, expansion and/or renovation of academic, classroom, faculty office, library,

student activity/recreation buildings and related equipment and furnishings on its campus

within the County.

Acquisition of real property for such facilities to accommodate renovation, expansion and

growth

Construction and equipping of facilities jointly owned and/or operated with other

educational institutions in the County

(3) 6.7% of the revenue of the tax shall be used for the following projects of Horry-Georgetown

Technical College:

Construction, expansion and/or renovation of academic, classroom, faculty office,

auxiliary service, administrative and/or student activity/recreation buildings and related

equipment and furnishings on its campuses within the County.

Acquisition of real property for such facilities to accommodate renovation, expansion,

and growth.

Construction and equipping of facilities jointly owned and/or operated with other

educational institutions in the County.

All revenue received by the School District from the sales and use tax will be used to reduce property

taxes needed to pay debt service on School District bonds and to directly pay costs of education capital

improvements projects of the School District identified herein. Shared revenue will be used to pay debt

service on bonds issued for Coastal Carolina University and Horry-Georgetown Technical College and to

directly pay costs of education capital improvement projects as identified herein.

Yes

No

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after

the word "Yes," and those voting against the question shall deposit a ballot with a check or cross mark in

the square after the word "No."

Looked at your real estate portfolio lately?

Looked at your real estate portfolio lately? Given the current financial crisis on world markets, most people have been looking at their financial portfolios – stocks, bonds, and other investment vehicles. But real estate generally makes up the bulk of a family's net worth.

Recently, that net worth has tumbled along with falling house prices. The average price of a Canadian resale home was 6.2 per cent cheaper in September than a year ago – at $315,461 compared to $336,321 in September 2007, according to the Canadian Real Estate Association. There are signs of stability in the market, though, with the sale of homes increasing 3 per cent in September over August.

With a market in Canada that seems to be stabilizing, people are asking themselves whether this is the time to sell their homes in order to realize the maximum gains from what is probably their biggest investment.

Your house is an asset that can be bought and sold like anything else to suit your financial circumstances.

And those close to retiring are worried about whether plunging house prices are going to affect their ability to retire the way they want to. Whether they're looking to sell and downsize, or are tempted by the prospect of a second home in another country, the financial landscape for real estate has changed over the last few months.

Lee Ann Davies, head of advanced retirement strategies at RBC, points out that, as advisers, "when we look at real estate, we look at it from a housing perspective and, firstly, as the primary home," she says. But, she admits: "Certainly, at this point in time, people might be looking at their portfolio and looking at whether their current home is suitable."

But rather than looking at your home's potential as an investment, she points out that anybody considering selling needs to ensure that any changes they are thinking of making suit their lifestyle – not just their investment portfolio.

"If you already own real estate and are looking at selling it, that's really a decision that should be made to fit with your life and lifestyle. (As real estate) is also part of your investment portfolio, timing the market is not something we would recommend."

For those thinking of downsizing to a smaller home, she suggests that people take a view of the bigger picture first.

"Go back to your priorities and talk about why would you be downsizing your home," Davies advises. "Would you be losing the services of your doctor? Your relationships with your church or other community services?"

The costs of both exiting and entering a home can be expensive – those most also be worked into a budget to ensure that the move will actually leave you better off, if you decide that, as a lifestyle choice, selling is a move you want to make.

Davies also notes that other costs must be taken into consideration: maintenance, insurance and, in some locations, she notes that you have to pay extra fees to be part of a community.

"Examine all of the `what ifs,'" she advises.

In terms of the United States, prospective "snowbirds" may be looking at the market and saying "aren't there some great bargains down there?" Davies points out that, while buying a second home or moving to a warmer climate might be perfectly feasible, in order to make an informed decisions, you need to get away from the emotional decision of a second home.

"Talk about it with an adviser. Does this fit your investment profile, risk and portfolio? Do you understand the location you might be thinking about? Have you talked to people who live there? Have you tried the location out by maybe renting there?

Another point in terms of foreign properties is currency fluctuations. We've seen that over the past few months with the Canadian dollar versus the American dollar. At the beginning of the summer it was trading well over the $1 mark; last week is was under the .80 cent mark. The point she makes here is that, since you can't time the market, you need to be aware of the risks.

"If you start to make the decision from an emotional perspective rather than having this type of discussion with your adviser, then later you'll second guess the decision that you've made. It's much harder to stick with those decisions then," Davies warns.

Whatever move you think you want to make , Davies suggests you make comparisons. Look at all the costs of owning versus renting, for example. Retirement money can grow for you, while real estate might not, for example. Again, she suggests seeing an adviser who will go through all of the trade-offs to help you make the right decision.

"I do understand why people are worrying," she says. "There's so much information coming at them so quickly, and it can be difficult to understand because of the amount of information. You should be able to see your adviser in good times and in bad."

So keep your eyes on the long-term and don't panic. Making an emotional decision could lead you on a long-term path to retirement you don't really want to be on.

Prices of U.S. single-family homes

Prices of U.S. single-family homes plunged a record 16.6 percent in August from a year earlier and plummeted more than 30 percent in Las Vegas and Phoenix, Standard & Poor's said on Tuesday.

Home prices in 20 major metropolitan areas fell 1.0 percent in August from July, according to the Standard & Poor's/Case-Shiller Home Price Indices.

S&P said in a statement its composite index of 10 metropolitan areas declined 1.1 percent in August from July for a 17.7 percent year-over-year drop, also a record.

"The downturn in residential real estate prices continued, with very few bright spots in the data," David M. Blitzer, Chairman of the Index Committee at Standard & Poor's, said in the statement.

A huge supply of unsold homes, tighter lending standards and record foreclosures have pushed down home prices, deflating a bubble from the early part of this decade.

For the fifth straight month, prices fell in every region on an annual basis, he said.

Both the 10-City Composite and 20-City Composite Home Price Indices have fallen from a year earlier for 20 consecutive months. In regions, annual returns worsened from last month's report, he said.

"As seen throughout 2008, the Sun Belt markets are being hit the most," he said.

Prices in Miami, San Francisco, Los Angeles and San Diego all dropped in excess of 25 percent, he said.

S&P noted one bright spot as the acceleration in decline was only moderate in August from July.