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In the latest session of Clarkonomics, Clark discussed how the housing market may not always be as bad as it seems. Much of the country is in a difficult situation, but it's not a dire one. The states that are in absolutely dire shape (because their bubble markets popped) include California, Nevada, Arizona, Florida, parts of Washington D.C., Michigan, Ohio and Indiana. The rest of the 40 odd states are experiencing sluggish sales with home values sliding slightly and an oversupply of houses. Most people who bought in 2005, 2006 or earlier this year financed 100 percent and are in weirdo exotic loans. That's the true picture of what's going on -- though it makes better headlines to say the sky is falling.

Some people are frightened by a new statistic that says the rate of houses closing once they go to contract has slipped from the traditional 97 percent to a hair under 90 percent. On the one hand, it's a huge change because the number of deals not closing has tripled. But on the other hand, nine out of 10 houses under contract still will go through. One thing Clark has noticed is that there's a window of opportunity right now if you're interested in a new home. New home sellers are sitting on a wounded duck. They're carrying large construction loans and bleeding money every month when deals fall through. They just want to get out with their shirts on. Clark's latest book, Clark Smart Real Estate, talks about why used homes are a better buy than new ones. But right now there's a strong possibility that you might find the opposite is true. Just one caveat about buying new in the bubble market states: It's not clear when the bottom will come and we're probably not there yet. So make sure you plan to own for a minimum of seven years in those markets to make it worth it. Otherwise, don't buy yet -- wait until the deals get better late next year.

About a year ago, Clark talked about Scott's Miracle-Gro firing employees who smoked. Employers have a direct interest in your health. Statistics tell us that smokers have higher absentee rates and medical bills than non-smokers. Clark recalls when he had a furniture delivery job in high school and the driver claimed that smoking since 12 hadn't hurt him! But today people accept it as common knowledge. Other than outright firing people, is there a way that companies can motivate people to have healthier habits? It turns out that paying workers small financial rewards to go on a fitness regimen works.

According to a new study in the Journal of Occupational & Environmental Medicine, cash incentives of as little as $7 work to get people in shape. Money is even a better motivator than having a gym at work, the study found. Here's how the study worked: Groups were either offered no incentives, seven dollars or fourteen dollars. They weren't given any advice on how to loss weight or exercise. The people who were paid fourteen dollars were more likely to loss weight than those who received no money. Fourteen dollars was an even bigger motivator than seven dollars, which Clark thinks is funny because it's not really all that much money as an incentive for three months of exercise and diet. The authors of the study now plan to do more research to find out the optimal amount of money it will take to bribe workers to health!

The iPhone has been a huge hit for Apple. It's also left a lot of people disgruntled because of Apple's exclusive deal with AT&T. Users of the iPhone are handcuffed to a two-year contract with the phone carrier. Apple released the iTouch to quell some of the criticism. The iTouch has the look and feel of the iPhone and all its bells and whistles. But it is not enabled for phone service! Now Verizon has become envious of the iPhone's success and done something it never does. The company has announced some vaporware in the form of competing products that are due around Christmas. They're supposed to be like the iPhone or even better, but we'll have to wait and see if they materialize. No word yet if T-Mobile or Sprint will do the same.

Clark recently was in an Apple store in a mall and it was packed with people on a night when other the stores were empty. Customers were playing with Macintosh computers, iBooks, iPods, nanos, iPhones and more. The sleekness of Apple products looks like something from a science fiction movie of the future. Clark is really impressed with Apple's design sense. For example, Clark's wife has a Mac now for her business. It cost a fortune, and Clark could have bought four desktop PCs running Vista for the price his wife paid. But his wife has a connection with her Mac like it's a person. That's because Apple's Steve Jobs is a creative genius who knows how to really make products pop. Look at Pixar. Also co-founded by Jobs, Pixar combines artistry and electronics in a way that's warm, exciting, colorful and stylish. Most people are willing to pay for all the pizzazz -- but not Clark!

Sometimes it seems like young people have a huge bull's eye on their backs for the banks. People who are between the ages of 18 and 24 are being killed with bank overdraft fees. The latest stats say they're paying more than one billion dollars in overdraft fees every year. Clark recently heard from someone who has a teen that overdrew a debit account by $15 and that generated $80 in fees. As a parent, it's getting more and more difficult to teach the young about money. But it must be done. When Clark was in school, you paid for things with cash. Today there's no equivalent in a credit-crazy world. While cash is finite, plastic is infinite. A parent's most important lesson to a son or daughter should involve a pen and a check register -- showing them how to take debit transactions seriously. Banks are only too happy to approve transactions that will result in overdrawn accounts and high fees.

There's a bill in Congress that's trying to make it so that a bank must contact you for approval before they overdraw your account. The banks, predictably, are incensed about this because they may lose profit. Clark loves it when people have more info to make smart (or dumb) choices. What happened to ethics and morality in the banking world? Why do bankers get up in the morning and try to figure out how to rip off fellow Americans? If a bank approves an overdrawn transaction that generates fees, how is that moral or ethical?? It's not. The bill will probably be killed because the bankers are so strong giving dirty money to politicians. So teach your children well and you'll save them from losing money in the school of hard knocks.