The World Bank published a report today in The Financial Times, saying that rapid interest rate increases aimed at surrounding inflation in product and asset prices, could give way to another recession in US and European countries, as their economies are recovering quite slowly.

The World Bank President, Robert Zoellick, said in the report that waiting for bubbles to burst and then cleaning up the aftermath is now a new lesson of what not to do.

According to him, the interest rates, tightened too much could lead to another downturn, especially in the case of countries that are showing weak recovery signs.

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When we try to fight off debt, we always focus on larger purchases and spending where most of the money is utilized. But what we fail to understand is, that the small purchases that are made on a daily bases account for a big part of that debt.

Two-thirds of purchases at grocery stores are done impulsively

It has been acknowledged that in general, at least two-thirds of purchases made at grocery stores are done impulsively. This adds up greatly to the amount of wasteful spending that harms people financially and stops them from getting rid of debt entirely. A little saving done here can save up a lot of money that can be used to pay off bills.

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Taking advantage of falling prices, buyers have stormed back to the market, surging the sales of previously owned homes in July, due to lower interest rates and a tax credit for first-time homeowners.

According to the National Association of Realtors, the number of existing home sales rose 7.2 percent in July from June, whereas the sales of condos and single-family homes each rose for the month. It was the largest monthly gain since the group began tracking existing home sales in 1999.

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