Is there any good economic news out there?

A hurricane pummels Texas, knocking refineries offline, which causes gas prices to spike.

The same storm dumps record amounts of rain on the Northwest suburbs, causing basements and streets to flood.

Meanwhile, the stock market takes a dive amid surging fears about the financial sector.

And that's just this week.

For months now, we've been bombarded by negativity. Much of the bad financial news is fodder for conversations by everyday folks. It can be triggered by media stories or an announcement at work about some negative financial projection or layoff notice.

And, that's not to mention higher prices for food, utilities and gasoline.

Can it be there's nothing but rotten economic news? Or is there a silver lining or some good things happening that get buried in the blizzard of bad?

Ken Goldstein, a labor economist at the Conference Board, said Americans' gloomy attitude is legitimate, given the reality of money not going as far and layoffs, not the cumulative result of negative news stories. The Conference Board is New York-based business research group.

With a U.S. unemployment rate that hit a five-year high at 6.1 percent last month, the share of people saying jobs are hard to find is at 32 percent, the highest level since October 2003, according to recent Conference Board interviews.

"The idea that people have been talked into a lousy mood - no, no, no," Goldstein said.

Yet University of Illinois psychology Professor Edward Diener - also known as Dr. Happy - argues the bad economic news we're getting these days will always be present and isn't as dire as you think.

Diener, who practices positive psychology, said people typically turn to the media for the negative, which is being emphasized by politicians arguing for change in the United States.

"But if you look around, things are not actually falling apart for most people. The U.S. family income has gone up," said Diener, who with his son co-authored "Happiness: Unlocking the Mysteries of Psychological Wealth."

Dr. Nancy Molitor, a clinical psychologist in Wilmette who helped develop tips on coping in trying economic times, doesn't necessarily contend things aren't as bad as we think. But she says constantly monitoring negative business news isn't a good idea for your psyche.

Molitor said you should pause - not panic - over negative economic news. She said you also must work at not adopting a doom-and-gloom mentality that leads to poor decision-making.

"Anxiety is contagious," Molitor said, "and it can feed on itself and mushroom and spin out of control."

Meanwhile, some experts question whether what's frequently portrayed as bad news really qualifies. Here are three examples:

Airfares

Rising airfares have become a popular complaint.

It cost an average of about 16 cents per mile to fly domestically in July, according to the most recent figures from the Washington-based Air Transport Association of America Inc. That means it would have cost about $160 to travel 1,000 miles.

January's per-mile rate was roughly 15 cents, so those same 1,000 miles would have cost $150.

But flights also cost an average of 15 cents a mile in 2000, numbers compiled by the association show. In other words, the price of an airline ticket isn't much more now than eight years ago.

Air Transport Association spokesman David Castelveter said he suspects most travelers would be surprised at the eight-year price comparison because there has been a frequent drumbeat about skyrocketing airfares. He added prices became artificially low after the Sept. 11, 2001, terrorist attacks.

Castelveter acknowledged some carriers have added fees for baggage check-in and other services, but stressed those are optional.

"People always say the prices are high," Castelveter said. "The prices are high relative to what?"

Molitor said duress causes us to lose perspective, so consumers likely won't compare today's airfares to 2000. She said perception is trumping reality about airfares, which could lead to people freezing and not planning vacations because of economic concerns.

Foreclosures

You can't help but hear about the mortgage crisis.

One of the latest pieces of news is how a record 9 percent of American homeowners with a mortgage were in foreclosure or behind on their payments in June.

But those statistics aren't scaring everyone.

Robert McDonald, owner of Centurion Financial Group in Deerfield, is among those who'd like to see words "mortgage crisis" go away.

"I think that's overblown. It's not a crisis. I just think a lot of these people weren't meant to be homeowners," said McDonald, whose company has had just one foreclosure in 23 years.

Others may beg to differ, of course, especially if they are losing their homes to foreclosure. However, McDonald argues what goes unsaid is those homeowners aren't necessarily thrown on the street - they just go back to renting.

In Illinois, 1 out of every 637 households received a foreclosure notice in June, a 42 percent increase from June 2007, according to RealtyTrac Inc. For Chicago's collar counties, that number was 1 out of every 487 households in Lake County, up 76 percent; 1 of 456 in Cook, up 53 percent; 1 of 482 in McHenry, up 36 percent; 1 of 490 in Kane, up 31 percent; and 1 out of every 773 households in DuPage, up 30 percent, according to RealtyTrac.

Still, Molitor said a crisis is in the eye of a beholder and the word is used for effect, often by politicians.

"Words do matter," Molitor said. "Words carry tremendous emotional weight."

Restaurants closing

It's common to hear a generic reference of "the economy" from the owner of a restaurant that closes.

Terry Ramsett, who co-owns two restaurants, isn't buying that excuse. And he said he won't use it if his new ventures don't succeed.

Instead of taking a negative outlook in a down economy, Ramsett said, he was willing to open the healthy eating Diced, and Double Jacks Sports Burger Bar in Algonquin this month because he believes they are what consumers want.

"What goes along with a positive attitude is confidence in the (restaurant) concept," Ramsett said.

Alain Lubin said she chose to tune out naysayers who wondered why she opened her Nirvana Wine & Grillerie in Vernon Hills last month. She said business has been good so far.

"People unwittingly participate in that (negativity) and make it more so," Lubin said. "I refuse to do that."

National Restaurant Association spokeswoman Annika Stensson said the organization doesn't have precise research on failures. However, she said, it's difficult to blame a single factor for an eatery's demise.

She said many "non-trendy" restaurants are doing quite well because that's their niche.

"The economy is currently a trigger, but there must be underlying issues for a (restaurant) to close because of it," Stensson said. "Whether those issues are related to finances, service or concept, that is hard to say."

Manage stress in tough economic times

Dr. Nancy Molitor of Wilmette assisted the American Psychological Association in assembling tips on dealing with stress about money and the down economy. Here are some of the suggestions.

• Pause but don't panic: There are many negative stories in the newspapers and television about the state of the economy. Pay attention to what's happening around you, but don't get caught in doom-and-gloom hype. Avoid the tendency to overreact or to become passive.

• Identify financial stressors and make a plan: Take stock of your financial situation and what causes stress. Write down specific ways you and your family can reduce expenses or manage finances more efficiently.

• Recognize how you deal with money-related stress: In tough economic times, some people are more likely to relieve stress by turning to unhealthy activities such as smoking, gambling, drinking or emotional eating. If these behaviors are causing you trouble, consider seeking help from a psychologist or community health clinic before the problem gets worse.

• Turn challenging times into opportunities for real growth and change: Think of how you can become motivated to fund healthier ways to deal with stress. Having dinner at home with your family can save money and bring you closer together. Consider learning a new skill.

Source: American Psychological Association

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