The Obama Presdiency is now 6 months old – his election took place 7 months ago. He is 1/8 of the way through his presdeincy. Time for his Freshman Year mid-term grades ………..
THE STIMULUS PACKAGE AND UNEMPLOYMENT
Obama promises more than 600,000 stimulus jobs
WASHINGTON – (THE LARGEST SPENDING PROPOSAL IN THE HISTORY OF THE WORLD – COSTING EVERY AMERICAN, MAN, WOMAN AND CHILD, THOUSANDS OF DOLLARS EACH. Even if the Obama promise is kept it will cost the American Taxpayer $1.3 million dollars for every job created – WOW – what a success – a part time, make work, Government C ontsrtuction job that will pay a worker $20,000, true a much needed $20,000, but at what cost ! $1.3 Million per job? For those that doubt the math 787 Billion is written this way $787,000,000,000,. Divide that by the 600,000 and you get $1,331,000 per job.is promising to deliver more than 600,000 jobs through his $787 billion stimulus plan this summer, repackaging a pledge the administration made weeks earlier as the economy continues to lose hundreds of thousands of jobs each month.
Obama’s promise to create large numbers of jobs — a vow that Vice President Joe Biden made last month — quickly drew criticism from oponents and economists who have argued his stimulus plan thus far hasn’t delivered.
“I think these estimates are overly optimistic,” said Arpitha Bykere, a senior analyst with RGE Monitor.
The government reported last week that the number of unemployed continues to rise; the unemployment rate now sits at 9.4 percent, the highest in more than 25 years. Hundreds of thousands of Americans continue to lose jobs each month.
Just how much of an impact Obama’s recovery program had on the pace of job losses is up for debate. Obama has claimed as many as 150,000 jobs saved or created by his stimulus plan so far, even as government reports have shown the economy has lost more than 1.6 million jobs since Congress approved funding for the program in February. ( 3 million jobs have been lost since Obama was elected – more jobs have been lost since Obama’s election than during the enitire 8 years of the Bush presidency)
Republicans remain critical of the stimulus spending, slamming it as a big government program that ultimately will do little for recovery. With only a fraction of the federal money actually spent thus far, it’s premature to give the stimulus plan credit for economic trends, congressional Republicans said last week.
“I think the economy is just as likely to begin to recover on its own, wholly aside from this, before much of this has an impact. So I’m very skeptical that this massive sort of spending binge that we’ve engaged in is going to have much of an impact,” said Senate Minority Leader Mitch McConnell, R-Ky, in March 2009.
Obama initially offered his stimulus plan as a way to put people back to work, a promise that 3.5 million jobs would be saved or created. The administration’s predictions that unemployment would rise no higher than 8 percent already have been shattered. Unemployment stands at 9.4% and is rising. The Obama Adminstration’s projection at a worse case secnario for unemployment, 8.0%, has been crushed. Unemployment is already 25% percent higher and is rising. http://finance.yahoo.com/news/Obama-repackages-stimulus-apf-15470798.html
OBAMA’S MORTGAGE ASSISTANCE PROGRAM
NEW YORK (AP) — The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.
But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation.
That’s the Catch-22 threatening to make an awful housing market potentially worse and keep the economy stuck in a funk. Kick-starting the economy requires higher spending, but rising rates mean fewer Americans will be able to refinance their home loans. And some potential buyers will be shut out of the market by higher monthly payments they won’t be able to afford.
Yields on 10-year Treasury notes, a benchmark for home mortgages and other consumers loans, jumped from 2.5 percent in March around the time of the Fed announcement to as high as 3.7 percent in recent days. 30-year mortgage rates jumped more than a quarter-point this week to 5.29 percent, the highest level since December, Freddie Mac reported.
“If the meltdown continues in the bond market, then mortgage yields will soon be at levels that choke off refinancing activity,” said economist Ed Yardeni, who runs his own investment firm. “Even worse, they could abort any necessary recovery in home sales and prices.”
One explanation is that bond investors anticipate a greater supply of government debt being sold to fund federal spending. Investors are also increasingly fearful that the trillions of dollars the government will need to borrow in the coming years to finance the various stimulus programs will lead to a new bout of inflation.
The White House estimates that the government will rack up an unprecedented $1.8 trillion budget deficit this year — more than four times last year’s all-time high. (THAT IS RIGHT THE OBAMA WHITEHOUSE ADMITS THEY HAVE INCREASED DEFICIT SPENDING 400% MORE THAN IN THE BUSH WHITE HOUSE)
“The bond market is calling the Federal Reserve out,” said Mike Larson, a real estate analyst at Weiss Research Inc. in Jupiter, Fla. “Investors are saying that the Fed can’t just print money out of thin air to finance a massive deficit.”
Fed Chairman Ben Bernanke acknowledged Wednesday in congressional testimony that large budget deficits could threaten financial stability by eventually eroding investor confidence and endangering the economy’s prospects for long-term health.
For a brief period of a few weeks sales of new and existing homes began to trend higher. Mortgage refinancings also jumped, allowing borrowers to lock in lower rates. Fee income from this activity helped lift profits at many battered banks and gave consumers more disposable income to spend, which helped lift their confidence about the economy’s prospects. All that was good for the nation’s businesses.But now, surging mortgage rates are threatening to undermine all that. Seventy percent of refinancing activity could be knocked out as rates close in on 5.5 percent, according to Mark Hanson, a managing director at the independent research firm Field Check Group of Menlo Park, Calif. (At the time of this posting rates have already climbed to 5.79 percent for those with “excellant credit”). Also, many homeowners who wanted to refinance didn’t lock in the super-low rates in April when the refi boom took off. “Half the deals in the pipeline are dead,” Hanson said. “People were applying to refinance to improve their situation, but now they are seeing it won’t be much improved.” All this means that even though mortgage rates are still low by historical standards, many of the trends that seem to be pointing to economic recovery in recent months could be undone fast.
12 percent are behind on mortgage or in foreclosure
NEW YORK – A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as thespreads to borrowers with good credit. And the wave of foreclosures isn’t expected to crest until the end of next year, the Mortgage Bankers Association said Thursday.
The foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent ofto borrowers with good credit were in the foreclosure process.
At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure. There were no signs of improvement.
The pain, however, is spreading throughout the country as job losses take their toll. The number of newly laid off people requesting jobless benefits fell last week, the government said Thursday, but the number of people receivingwas the highest on record. These borrowers are harder for lenders to help with loan modifications.
“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.”
Economists refer to the current surge of foreclosures as the third wave, distinct from the initial spike when speculators gave up property because of plunging real estate prices, and the secondary shock, when borrowers’ introductory interest rates expired and were reset higher.
“We’re right in the middle of this third wave, and it’s intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com. “That loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They’re coast to coast.”
Those sliding into foreclosure today are more likely to be modest borrowers whose loans fit their income than the consumers of exotically lenient mortgages that formerly typified the crisis.
Mortgage rates above 5 pct for 1st time in 3 months
In February Obama stood before a crowd of 50,000 in Phoneix Arizona and outlined his program – now, 4 months later here are rthe facts:
Under a program announced in February by the Obama administration, the government is to spend $75 billion on incentives for mortgage servicing companies that reduce payments for troubled homeowners. [The Obama Administration claimed the program would help 4 million home owners]. But three months after the program was announced, a Treasury spokeswoman, Jenni Engebretsen, estimated the number of loans that have been modified at “more than 10,000 but fewer than 55,000.” [Why can’t the Government be more exact than this – a 45,000 mortgage gap between 10,000 and 55,000. Where is the $75 Billion in Taxpayer money going? If the “true number” of modified mortagges is 10,000, the Obama program cost taxpayers $7.5 million per mortgage. Who is kidding who? Someone is robbing the US Taxpayer blind, fewer people have been helped NATIONALLY than attented the speech in Phoenix]
In the first two months of the year alone, another 313,000 mortgages landed in foreclosure or became delinquent at least 90 days, according to First American CoreLogic.
“I don’t think there’s any chance of government measures making more than a small dent,” said Alan Ruskin, chief international strategist at RBS Greenwich Capital.
Last year, foreclosures expanded sharply as the economy shed an average of 256,000 jobs each month. Since then, the job market has deteriorated further, with an average of 665,000 jobs vanishing each month.
OBAMA’S ENERGY PROGRAM.
Candidiate Obama and the Democrats, including Nanacy Pelosi, promised the American Publci to prusue and “all avalaible means” energy policy when it came to making America Independent. The promises included and increase in the exploration and development of domestic America’s gas and oil reserves. Democrats joinmed Republicans and echoed the chant or working Americans across this Country in a chant of “Drill Baby Drill”. Since agining office Obama and Speaker of the House Pelosi have blocked this development at every turn. Did you know that American Oil Companies offered to pay the State of California $45 Billion Dollars a year to develop off shore oil resources and the democrats refused. $45 Billion dollars, enough money to balance the budget of the State of California at the time. What have we received instead, empty promises. The price of a barrel of oil has topped $70 a barrel, thanks mainly to the activities of oil speculators, not to a sudden surge in the US economy, and gasoline prices are headed to $4.50 a gallon, manipulated by an Administration that wants artifically high gasoline prices to support the economic agenda of its finanical backers in the “Green Inustries”. How will $5.00 a gallon gasoline help the unemployed?
OBAMA ON FOREIGN POLICY
North Korea, Iran, the U.S. as apology central
Yes We Can, Yes We Can, Yes We Can ……… The question is “yes you can” what?
Obama’s First Term Freshman Grades: What do you think? Should they be higher or lower than what he earned at Columbia in his Freshman Year? What were Obama’s grades at Columbia? No one knows, he won’t release the transcripts.
Filed under: Banking Crisis, Barack Obama, Economic Crisis, Economic Recovery, Economic Recovery Plan, Economy, Mortgage Crisis, Unemployment Tagged: | Obama - Freshman Mid-Term Grades. Empty Promises - Hollow Slogans, Obama's Agenda Bogs Down - Empty Promises / Failed Programs