Thursday, April 15, 2010

Less Depressing Financial News: Jobs Losses Rise: Home Mortgages Default

Never have Americans been so completely clueless about our country's financial health and our job-creation ability.  God help us. We believe in this country, but everyday it becomes clear that we have been lied to, and are being lied to, with a great deal of enthusiasm.

Home Mortgage Defaults

Fortune Magazine tells us the "long-awaited recovery is now underway." It's a slow, painful slog that has shifted from "dreadful to less depressing." Unemployment stands at least, at 9.7%. Home prices are in the toilet, but...corporate profits are up. Our job-makers have realized they can do more with less...and boost profits by being leaner. Earnings were up among the Fortune 500 by an astounding 335%, but sales are sluggish. "The largest part of the gain came from lower payrolls...and explains the "explosion" in Fortune 500 profits.

George Soros, the mover and shaker behind Barack Obama is warning of another market crash, but if we get lucky we have 8 years before the bottom falls out. Keep in mind that George Soros is as anti-America as one can be.

Jobless claims wasn't expected. Reports out yesterday said new requests for jobless benefits rose by 24,000 last week to a seasonally adjusted 484,000. The second week in a row for increased claims. Economists predicted claims would fall.

As the Wall Street Journal said, if that were possible Russia, Cuba and North Korea would be economic powerhouses:
Currently, the mean government salary is fully twice the mean private-sector salary. That means every government job destroys or displaces two private-sector jobs. 
Home mortgage defaults rise among those who took advantage of Obama's wildly criticized "loan modification" program. Many have defaulted even after the government modified their payment amount. A NYT writer says if the trend continues the Obama plan may collapse on itself. The Treasury Department can't explain what is happening - other than the common sense that the people still can't afford their mortgages, and I'll point out that probably many have lost jobs since "modifying" their loans. Seven million households are behind on mortgage payments.

A senior policy counsel for the Center for Responsible Lending said she expects the post-modification defaults to continue to rise. "The current model for modifications doesn't necessarily produce sustainable results."

Readers, can you name one program this administration has launched that provides sustainable results? I didn't think so. Looking forward to "less depressing news" is not the American way. Let's get these job-killers out of Washington, D.C.

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