The economy might have “bottomed-out”, that is, the worst might be over but for individual victims of the financial crisis, their troubles are only beginning. With their houses foreclosed, their credit on the red, and their future uncertain, there is so much they can do. Majority of these stories are quite sad but some are just heartbreaking. If you are in this situation, the blogs below might be of some help.

JD @ Get Rick Slowly recently updated his blog with the post, “How to Face a Family Financial Crisis?” One of his readers came to him with a problem: his family member is in serious financial trouble. JD advised that he should only spend on the necessities, be brutally honest with him, and consider drastic measures. The blogger further said that it is not a good idea to touch the retirement savings because it might lead to problems in the future.

Adam Baker @ Man vs. Debt wrote a very detailed article, “42 Ways to Radically Simplify Your Financial Life”. Finances need not be complicated if you follow his tips. Among the most useful tips included in the post include consolidating accounts, combining finances if married, freezing credit reports because it minimized the risk of identity theft, using cash, paying bills in batches, and budgeting using last month’s income.

Are you interested in finding out how the financial crisis actually occurred, its implications to ordinary Americans, and why the government bailout became necessary? The Mint Blog featured a visual presentation of the events leading to the worst economic problem since the Depression. The entry, “A Visual Guide to the Financial Crisis” is very helpful.

The challenges being faced by many Americans today might seem difficult to overcome, but it is not impossible. Increasing your financial know-how, following practical tips, and saving money by comparing online travel deals and credit reports can go a long way in improving your finances.

About a year after the Lehman Brothers collapse, its shock waves across the globe seemed to have subsided. It can be remembered that the investment bank’s problematic demise intensified the deep recession in the US economy. In addition, it helped pave the way for the government’s significant role in managing the economy through corporate bailouts and other programs.

The Lehman Brothers is also significant because previous to its demise, the public relied mainly on markets to right themselves. Its failure made government intervention not only acceptable; it was also seen as a necessity. However, even if the impact of Lehman Brothers in terms of regulatory reforms is big, to a surprising degree, there are a lot of aspects in the financial industry that hasn’t changed. Because of this, many people are looking for bargains through comparison shopping.

Banks are Still Taking Risks

Major US banks cannot let go off their old habits. As profits got off their lows, executives are regaining their swagger. Right now, a lot of banks and other financial institutions are selling exotic products that pushed the economy on the brink of collapse last fall. In fact, their appetite for risks has even grown.

Collectively, the top five banks in the United States can potentially lose more than $1 billion any day in the second quarter of 2009 if their bets go sour. According to Peter Solomon, a former vice-chairman from Lehman Brothers, “there’s no fundamental change in the way banks are run or regulated…there’s just fewer of them.”

On the Regulatory Front

Even as financial industry is regaining its footing, lawmakers cannot seem to keep up. Democrats are getting bogged down by the infighting between bankers, federal regulators, and even other lawmakers who believe that expanding the government’s control on private firms might create more problems over the long term.

Washington officials say they heartened that the financial market seems to be healing but at the same time, they realize that new rules need to be established. It is important for them to get out of the current limbo to get the economy back in shape.

With the deepest recession in the US economy since the Great Depression, the income gap between the well-off in the United States and the average American is becoming to shrink. Ideally, this gap should be closed by lifting up the bottom. But in the trend being seen today, it is shrinking because the top is being pulled down.

According to Ariell Reshef, an economist from the University of Virginia, “Based on experience, it looks like inequality will go down and change the long-term trend of America being a less egalitarian society.” Over the last three decades, individuals occupying top positions as chief executives, law-firm partners, Wall Street bankers, and savvy traders have amassed huge amounts of money. Meanwhile, the income of teachers, office managers, factory workers, and other individuals working in the middle grew slowly.

It is estimated that in 2007, the top 1 percent of US families controlled 23.5 percent of all personal income in the United States. The share of that 1 percent is shrinking fast. It is believed that their income will drop to between 15 to 19 percent of all personal income by 2010.

One significant development that can be seen is the drastic cut in pay for chief executives. In 2008, the median salary of executives listed in the S&P fell 15 percent. However, the effects of the economic crisis and the succeeding credit crunch will go deeper than that. Saving money, for example, has become an important part of an average America’s life.

Finance, for its part, has previously been seen as a lucrative job that attracts top talents. It will not be this way in the future because it will make up a smaller part of the overall economy. The behaviors of Americans will also change. Because borrowing is becoming harder, the focus of many would be debt relief to avoid high interest payments. In any case, there is no doubt that the developments in the last two years will be seen as a watershed for the country’s economic life and American’s lifestyles.

This week, we mainly talked about debt, debt assistance, and finance-related problems. Well, for today’s post, we will take a break from all of that. Everyone can take a breather from their financial troubles. Instead, we’ll provide a list of blogs that can help you save money. Some blogs are witty; some are very informative, while there are others that even give out promotional codes. Hopefully, you’ll gain something from reading these blogs. So below are this Friday’s rundown of recommended blog reads:

Kathryn @ Promotional Codes compiled a list of coupons, deals, and discount codes you can take advantage of. Some of the things you can save on include airfare, gift products, beauty supplies, and pet products among others. There are a lot of fun things you can buy at rock bottom prices.

The Save Money Blog featured a post titled “Is Your Online Time Wasted?” The article basically revolved around the title because it talked about making productive use of your internet time. For example, you can use it for comparative shopping for health insurance and other deals. A good site that provides comparison shopping for credit report, online travel, and even DVD rentals is ComparedForMe.com.

The Not Made of Money blog provided very helpful money saving tips for this week with the article “Five Tips for Tightening Your Budget”. It gives very practical advice about getting your spending under control. You can slash your entertainment expenses, look into your utility bills, learn to do house chores instead of hiring someone, and avoid new purchases.

Bill Shrink Guy recorded his observation about the recession with his article “10 Behaviors that the Recession made more acceptable.” It is a witty blog post that talked about how frugal people rule during the time of recession, while they are dismissed as penny-pinchers during more prosperous times. Frugal behaviors that can be observed today include brown-bagging leftovers, growing your own food, and even bartering.