Good news, bad news. Although venture capitalists are sounding cheerful again [Steve Kaufman, SJM, 12/2], a sharp drop in the Consumer Confidence Index (and in retail sales) underscores continuing layoffs at a time when companies should be hiring. Unemployment will remain high for the next six months to a year. Inflation will remain low, but many companies are giving only bonuses instead of wage hikes. With most families having two wage earners already, there's little slack for those who need extra cash. [Jane Bryant Quinn, SJM, 12/1.]

The median price of a house in San Jose has fallen slightly to $218K. [Mary Anne Ostrom, SJM, 12/4.] Low-end demand from first-time buyers is strong. Sales nationwide have slumped, although [or because] prices are generally up. Interest rates are at their lowest in 14 years, but consumers are not confident that they can keep up the payments. For existing single-family detached homes, the median selling price has been: Dallas, $90K; Sacramento Co., $139K; Seattle, $147K; NY City, $175K; Boston, $179K; San Diego Co., $192K; Los Angeles Co., $220K; and Santa Clara Co., $269K. [Ibid., 11/2 & 11/5.]

In tough times, be sure to pay off your credit card balance. If you absolutely have to run on credit, get the cheapest credit you can. Other tips from The Secret Banker's Bulletin are: cancel your mortgage insurance, shop sales, weigh potatoes to get the heaviest sack, buy cheap gas, inflate your tires properly, pay your taxes only when due, and -- one I really like -- check (800) 555-1212 for toll-free numbers before calling companies long distance. [SJM, 11/24.] (For a sample of the newsletter, send $1 to Bulletin Sample, Box 78, Elizaville, NY 12523.)

Jane Bryant Quinn recommends that you accelerate your mortgage payments if you're self-employed, middle-aged, or otherwise insecure. Having your house paid off could keep you from losing it. Even if you just owe less, that could help you refinance at lower monthly payments. A home-equity line of credit will let you borrow again if you need cash, although your credit may be frozen if the bank learns that you're unemployed. If you're young and on your way up, keep your house mortgaged to the hilt and invest in stock-owning mutual funds. [Newsweek, 11/4.] As interest rates continue to decline, people living on their savings should keep no more than one year's expenses in money-market accounts. CDs or Treasury notes will provide security at better rates. [SJM, 12/1.]