Economic Recovery: Profits From Overseas Ops Double Fed Ex 1st Qtr Profit – 1700 American Workers To Be Laid Off
Economic Recovery? No Spinning These Numbers – August 2010 Lenders Foreclose More Homes Than At Any Time Since Mortage Crisis Began
US homes lost to foreclosure up 25 pct on year
The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.
In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.
August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. The previous high was in May.
Banks have been stepping up repossessions to clear out their backlog of bad loans with an eye on eventually placing the foreclosed properties on the market, but they can’t afford to simply dump the properties on the market.
Concerns are growing that the housing market recovery could stumble amid stubbornly high unemployment, a sluggish economy and faltering consumer confidence. U.S. home sales have collapsed since federal homebuyer tax credits expired in April.
That’s one reason fewer than one-third of homes repossessed by lenders are on the market, said Rick Sharga, a senior vice president at RealtyTrac.
[The reason only 1/3 of the foreclosed homes are "on the market" is that the banks are tryoing to protect the value of their inventory of foreclosed homes, by limiting the number on the market thay are artificialy propping up the value of the "foreclosed home market". The Government tax credit did not create "new housing demand" it simply shifted sales forward ... Google: Federal Home Trac Credit Fraud - to read about the mismanagement of that program by the Federal Government - or Google: Mortgage Fraud Continues]
“These (properties) are going to come to market, but very slowly because nobody wants to overwhelm a soft buyer’s market with too much distressed inventory for fear of what it would do for house prices,” he said.
As a result, lenders are putting off initiating the foreclosure process on homeowners who have missed payments, letting borrowers stay in their homes longer.
The number of properties receiving an initial default notice – the first step in the foreclosure process – slipped 1 percent last month from July, but was down 30 percent versus August last year, RealtyTrac said.
Initial defaults have fallen on an annual basis the past seven months. They peaked in April 2009.
Still, the number of homes scheduled to be sold at auction for the first time increased 9 percent from July and rose 2 percent from August last year. If they don’t sell at auction, these homes typically end up going back to the lender.
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to RealtyTrac. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
[Realty Tracs number are way off, that or the AP is not reporting them correctly - At least 8 million homes have been foreclosed - 2.3 million homes have been foreclosed and placed on the market for sale. More than 2.3 million homes have been foreclosed in the States of Michigan and Nevada alone]
In all, 338,836 properties received a foreclosure-related warning in August, up 4 percent from July, but down 5 percent from the same month last year, RealtyTrac said. That translates to one in 381 U.S. homes.
Among states, Nevada posted the highest foreclosure rate last month, with one in every 84 households receiving a foreclosure notice. That’s 4.5 times the national average.
Rounding out the top 10 states with the highest foreclosure rate in August were: Florida, Arizona, California, Idaho, Utah, Georgia, Michigan, Illinois and Hawaii.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures.
Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can’t qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.
[A program that was touted by Obama as something that would help 9,000,000 home owners at a cost of nearly $700 billion dollars has in fact helped only 300,000 and tens of thousands leave the program every month as their homes sink futher "under water"]
Filed under: Economic Crisis, Economic Recovery, Economic Recovery Plan, Employment, Famine, Fannie Mae, Financial Crisis, Foreclosures, Home Foreclosures, Housing Crisis | Tagged: Economic Recovery, Mortgage Crisis, Mortgage Foreclosure | Leave a Comment »
August 2010 Employment Numbers: Economy 200,000 jobs short of breakeven point – Unemployment rises to 9.6%
McAuley’s World Comments in Blue:
WASHINGTON – Private employers hired more workers over the past three months than first thought, a glimmer of hope for the weak economy ahead of the Labor Day weekend. But the unemployment rate rose because not enough jobs were created to absorb the growing number of people looking for work.
Companies added a net total of 67,000 new jobs last month and both July and June’s private-sector job figures were upwardly revised, the Labor Department said Friday. [See my comments below]
Stocks surged after the report’s release. The Dow Jones industrial average rose more than 100 points in afternoon trading and broader indexes were all up. [Yes, after it was reported that 67,000 "net jobs' were added and not lost ... as was expected ... wait until Tuesday when the vacation has ended and people return to their offices and digest the "true story" ... please read on] ….
….. Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. For the first time this year, the manufacturing sector lost jobs, down a net total of 27,000 for the month….
“Companies added a net total of 67,000 new jobs last month”…. no wait… “Overall, the economy lost 54,000 jobs”… you cannot have a “net total increase” and “Overall, lose jobs” at the same time.
Private companies “allegedly” added 67,000 jobs – there was no “net increase” as the economy, as a whole, lost a “net” of 54,000.
Remember that today, when the press and the Obama Administration claims that jobs have been ”added”, the number includes the new “saved or created” concept. After all the numbers were “crunched”, including all the claims of “saved or created” … the economy lost a total of 54,000 jobs in August, there was “zero net jobs gained”. The net loss of 54,000 jobs includes the 67,000 jobs that were allegedly saved or created. But for the claim that there were 67,000 jobs “created or saved” the economy would have lost 114,000 total jobs in August. Once again, there was zero “net job increase” in July 2010.
The United States needs to “create” a minimum of 150,000 new jobs, “actual jobs” as opposed to imaginary or “virtual” jobs, each and every month, to maintain an “employment equilibrium” – to have the economy keep pace with new workers entering the workforce – to have “zero change” in the unemployment rate – no increase – no decrease. If employers eliminate jobs, the economy must create and equal number of new jobs, in addition to the 150,000 jobs needed to accomodate the new workers entering the work force, just to break even. The U.S. economy needed to create at least 1.2 million new jobs between January and the end of August 2010 to maintain an “employment equilibrium” for 2010. (8 months x 150,000 per month = 1.2 million). We are at least ½ million new jobs short of “employment equilibrium” for 2010 (even when we count all of the claimed “saved or created” nonsense jobs).
Query: With a short fall of ½ million new jobs to date in 2010, ½ million jobs short of keeping pace with new workers entering the workforce, never mind creating jobs to replace those jobs that have been lost, why hasn’t the unemployment rate changed (increased) since January 2010? The January 2010 unemployment rate was 10%, today the Obama Administration claims our unemployment rate is 9.6%. If we haven’t created enough jobs to maintain an “”employment equilibrium” with the new workers entering the work force, how did our unemployment rate drop?
Example: In August 2010 the economy needed to create 150,000 new jobs to stay even with the number of new workers entering the work force. The economy actually lost 54,000 jobs …. so in August 2010 the economy was a total of 204,000 jobs short of breaking even ( 150,000 new workers entering the work force plus 54,000 jobs that were lost in the month …).
The shortfall of ½ million new jobs means that the economy fell 40% short of creating enough jobs to maintain an “employment equilibrium”, never mind creating enough new jobs to reduce the unemployment rate.
How has the Obama Administration kept the unemployment rate from rising? (How is the Obama Administration cooking the books?).
1). For every “new worker” who enters the economy without a job being created for them, the Obama Administration claims that 1 unemployed worker gives up their job search and leaves the work force. This is a fraud, but it manufactures a false “employment equilibrium” for the press to report.
2). When the Obama Administration claims to “save” a job, the “save” can be a monthly event – a single individual working for a single employer can have the same job “saved” up to 12 times in a year. Not 12 jobs, 1 job 12 times. When 12 jobs are lost you cannot create a true “employment equilibrium” by saving 1 job 12 times, because that still leaves 11 unemployed people.
Do I smell something burning… are those numbers done yet … shouldn’t someone stop cooking the numbers and look for some real solutions?
While I was reading various blogs today I noted an amazing number of wild claims about unemployment during G. W. Bush’s Presidency … these are the true facts and not some wild political claims:
Average Annual Unemployment Under G.W. Bush – all 8 years - 5.2 %
Highest Annual Unemployment Rate During G.W. Bush: 5.99 (2003)
Lowest Annual Unemployment Rate During G.W. Bush: 4.61 (2007) Just before the Democrats took over Congress …
B. OBAMA’S ANNUAL UNEMPLOYEMNT RATES: 2009 - 9.2%
Jan – Aug 2010 - 9.6%
Filed under: Economic Crisis, Economic Recovery, Economic Recovery Plan, Economists Against The Bailout, Economy, Employment, Unemployment | Tagged: Double Dip Recession, Economic Recovery, Economy, Unemployment | Leave a Comment »
Employers appear to be laying off workers again as applications for unemployment insurance reached the half-million mark last week for the first time since November. Initial claims for jobless benefits rose by 12,000 last week to 500,000, the Labor Department said Thursday.
It was the fourth increase in the past five weeks and evidence that the economic recovery has weakened. Homebuilders and other construction firms are laying off more workers as the housing sector slumps after the expiration of a popular homebuyers’ tax credit. State and local governments are also cutting jobs to close large budget gaps.
“This is obviously a disappointing number that shows ongoing weakness in the job market,” said Robert Dye, senior economist at the PNC Financial Services Group. The four-week average, a less volatile measure, rose by 8,000 to 482,500, the highest since December.
The increase suggests the economy is creating even fewer jobs than in the first half of this year, when private employers added an average of about 100,000 jobs per month. That’s barely enough to keep the unemployment rate from rising. The jobless rate has been stuck at 9.5 percent for two months. Stock futures fell on the prospects of more layoffs.
Dow Jones industrial average futures had risen by 50 points before the report was released. They dropped immediately afterward and were down six points shortly before the market opened.
Jobless claims declined steadily last year from a peak of 651,000 in March 2009 as the economy recovered from the worst downturn since the 1930s. After flattening out earlier this year claims have begun to grow again. Dye said that claims showed a similar pattern in the last two recoveries, but eventually began to fall again.
The current elevated level of claims is a sign employers are reluctant to hire until the rebound is well under way. That’s what happened in the recoveries following the 1991 and 2001 recessions, which were dubbed “jobless recoveries.”
The number of people continuing to receive benefits fell by 13,000 to 4.5 million, the department said. The continuing claims data lags initial claims by one week. But that doesn’t include millions of people receiving extended unemployment insurance, paid for by the federal government.
About 5.6 million unemployed workers were on the extended unemployment benefit rolls, as of the week ending July 31, the latest data available. That’s an increase of about 300,000 from the previous week.
During the recession, Congress added up to 73 extra weeks of benefits on top of the 26 weeks customarily provided by the states. The number of people on the extended rolls has increased sharply in recent weeks after Congress renewed the extended program last month.
It had expired in June.
Private employers added only 71,000 jobs in July. But that increase was offset by the loss of 202,000 government jobs, including 143,000 temporary census positions. July marked the third straight month that the private sector hired cautiously.
Economists are concerned that the unemployment rate will start rising again because overall economic growth has weakened significantly since the start of the year. In a healthy economy, jobless claims usually drop below 400,000. But the recent increases in claims provide further evidence that the economy has slowed and could slip back into a recession.
Many analysts are worried that economic growth will ebb further in the second half of this year. After growing at a 3.7 percent annual rate in the first quarter, the economy’s growth slowed to 2.4 percent in the April-to-June period.
Some economists forecast it will drop to as low as 1.5 percent in the second half of this year.
Filed under: Economic Crisis, Economic Recovery, Economic Recovery Plan, Economy, Employment, Unemployment | Tagged: Double Dip Recession, Economic Recovery, Economic Stagnation, Unemployment, Unemployment Numbers Hit 9 Month High | Leave a Comment »
May 2010 Jobs Report – Econcomy Is Still Losing Ground – Job Creation Isn’t Keeping Pace With The Number Of New Workers
The following is being reported by the Associated Press:
“The government also said 431,000 jobs overall were created last month, but most of those jobs, 411,000, came from the government’s hiring of temporary census workers. The overall number also fell short of expectations. Economists polled by Thomson Reuters had forecast employers would add 513,000 jobs.” http://news.yahoo.com/s/ap/20100604/ap_on_bi_st_ma_re/us_wall_street http://www.heritage.org/Research/Reports/2010/06/Heritage-Employment-Report-May-Jobs-Struggle-to-Appear
The straight forward math is this, private employers added 20,000 (20 thousand) employees last month when a gain of 513,000 was expected. Over the next 60 days, the 411,000 part time census workers will rejoin the ranks of the unemployed. Last month’s (April 2010) job hires were largely due to “temporary summer hires”.
The Obama Adminiistration is claiming that the unemployment rate has dropped from 9.8% to 9.7% - a drop that isn’t being related to temporary hiring (becasue if it was related to temporary hiring – then the Obama Administration would need to report an increase in the unemployment rate after the people are “laid off” from their temporaray work) the “lower” unemployement number is being related to the fact that “300,000 people have given up on their job searchs”.
Please note that the Government does not count an individual who has exhausted their unemployment benefits as being “unemployed”.
In our recent past the Liberal Media has reported that it takes between 150,000 and 200,000 new jobs each and every month to keep up with population growth – any “private job” creation number below that means the economy is shrinking. These statements are correct.
With only 21,000 jobs created by private employers in May 2010, we are somewhere between 130,000 and 180,000 jobs short of breaking even for the month.
Personally, I find it surprising that no media outlet has pointed out that, over the last 6 months, the Obama Adminstration has reported that the usual “growth” in the number of individuals entering the “job market” has been off set by an equal number of people “giving up their job searches”. What a remarkable coincidence!
Read and compare these historical statements from our liberal media:
- The New York Times, 08/08/03: The economy must add about 150,000 jobs or more each month to keep up with population growth and bring down the jobless rate over a long period of time. In the 1990′s, the economy created an average of 181,000 jobs a month. http://www.nytimes.com/2003/11/08/business/08ECON.html?pagewanted=2
- The San Francisco Examiner – April 3, 2004: Total jobs outside the farm sector soared by 308,000, the Labor Department reported Friday, the unemployment rate rose to 5.7 percent from 5.6 percent in February primarily because 179,000 people entered the labor force. (A net gain of 129,000 jobs and the unemployment rate went up) http://articles.sfgate.com/2004-04-03/news/17423578_1_worst-job-recovery-job-growth-labor-market
- Washinton Post 09/04/04 : Employers added 144,000 jobs to their non-farm payrolls in August on a seasonally adjusted basis, an improvement after two months in which job growth essentially stalled, but barely enough to keep pace with population growth. http://www.washingtonpost.com/ac2/wp-dyn/A60680-2004Sep3?language=printer
- The Los Angles Times 09/04/04: U.S. employers added a net 144,000 jobs to their payrolls in August and the nation’s unemployment rate dropped a notch to 5.4% (WOW – 5.4%, not 9.9%) - Unless employment growth averages 228,250 a month from September through December, Bush will be the first post-Depression president to finish his term with fewer jobs than when he started. http://articles.latimes.com/2004/sep/04/business/fi-jobs4
- The Boston Globe 01/08/05: US employers boosted payrolls by 157,000 jobs in December, keeping the economy on a path of moderate expansion and completing the first year of job growth since 2000. The month’s job gains were slightly less than analysts expected, and just enough to keep up with the natural growth of the labor force and prevent unemployment from rising. Over the past year, the economy has averaged 186,000 new jobs a month, and whittled three-tenths of a point from the December 2003 unemployment rate of 5.7 percent. All told, the nation added a net 2.2 million jobs last year, the most since 1999, when the economy created 3.2 million. http://www.boston.com/business/globe/articles/2005/01/08/us_gains_157000_jobs_in_december/
Until the Obama Adminstration admits we are not on course for a recovery, the proper corrective measures will not be taken.
“Spinning” the numbers doesn’t help the average Amercian or improve our economy …..
We were promised that if the “Stimulus Plan” was passed the unemployment rate would not rise above 8%, and that millions of new jobs would be created in the “private sector”. Reuters reported that the Country lost over 3 million jobs in the 1st 10 months after the “stimulus” was signed 18 months ago. http://www.forbes.com/feeds/afx/2009/10/30/afx7069921.html
The New York Times has reported that the “total number of jobs lost” through the 1st of this year is 8 million. http://www.nytimes.com/2009/10/04/weekinreview/04norris.html?_r=2&scp=2&sq=floyd&st=cse
Between the start of the recession and the 1st of Janauary 2010 a total of 8.1 million jobs were lost. http://www.epi.org/publications/entry/jobs_picture_20100108/
At the end of January 2010, the U.S. Government’s Bureau of Labor Statistics reported that the number of ”jobs lost” had increased to 8.4 million. http://dailycaller.com/2010/02/08/unemployment-drops-while-total-jobs-lost-increases/
On that same day, the Obama Administration reported that the unemployment rate dropped from 10% to 9.7 %. This happened despite the fact that the Administration reported that they had “overestimated job creation” by over 800,000 jobs. We lost 800,000 jobs and the unemployment rate dropped from 10% to 9.7%. http://money.cnn.com/2010/02/04/news/economy/jobs_outlook/
In March 2010 the BLS reported a loss of 20,000 jobs in February 2010. A loss of 20,000 jobs would mean that the US was between 170,000 and 220,000 jobs short of breaking even in February 2010. The “official” unemployment rate remained “unchanged”. http://www.irishtimes.com/newspaper/breaking/2010/0303/breaking54.html
In April 2010 the Bureau of Labor Statistics reported that 162,000 jobs were created in March 2010. Temporary census jobs counted for 48,000 of the jobs while 114,000 were in the private sector. The 114,000 “private sector” jobs were certainly a welcome sign, but the number of new jobs were 50,000 jobs below the number needed to “break even” for the month. The “official” unemployment rate remained unchanged. http://www.employmentmetrix.com/blog/2010/04/good-news-for-job-seekers-march-jobs-report-shows-growth.html?no_prefetch=1
The report for May 2010, which was relased today, is discussed above. (411,000 of 431,000 jobs created are temporary census jobs). The 20.000 jobs created in the private sector falls far short of the 150,000 to 200,000 needed to break even for the month, however, we are told that the unemployment rate dropped from 9.8% to 9.7% because 300,000 “unemployed” workers stopped looking for work.
Exactly where are these 300,000 unemployed workers who suddenly gave up on finding work? What a surpise! A 6th straight month where the “job creation numbers” fall short of the “break even point” without a single increase in the “unemployment rate”.
I’m sorry, I don’t believe it for a minute. These numbers are more thoroughly cooked than my Christmas Goose!
If an individual has “access” to unemployment benefits they must report that they are “able, available and seeking” work …… in order to collect benefits.
It appears that the number of “lay-offs” per month may have returned to pre-recession levels, however, new job creation is not keeping pace with the natural and historical growth in the Country’s labor pool. If “job creation” isn’t keeping pace with the natural growth rate of the “labor pool” we should be seeing, as we have always seen in the past, an increase in the monthly unemployment rate. http://www.heritage.org/Research/Reports/2010/06/Heritage-Employment-Report-May-Jobs-Struggle-to-Appear
The economy is not in recovery and if the books were not being cooked, the unemployment rate would be rising.
When President Obama says “our economic policies are working” and “we are heading in the right direction” he is either in self denial or he is, as is claimed, more interested in “spinning” the facts for his personal poltical benefit than he is interested in helping working Americans, or more imporantly, helping those Americans who wish they were working.
For a comparison of the average annual unemployment rates during the George W Bush Presidency and our 1st 18 months under Barack Obama (Chart of average annual unemployment rates from 1948 through 2009) see: http://www.miseryindex.us/URbyyear.asp?StartYear=1948&EndYear=2009
Filed under: Economic Crisis, Economic Recovery, Economic Recovery Plan, Economy, Employment, Recession | Tagged: Economic Recovery, Economy, May 2010 Job Numbers, The Failed Stimulus Plan, Unemployment | Leave a Comment »