State of US Economy After Trillions of Taxpayers Funds – Update

So how is the economy given all the money the US Taxpayer are pumping into the system?

How long will Americans wait for results before judging success or failure of their leaders during this crisis?

Take this poll.

Courtesy of CHRISTOPHER S. RUGABER – Apr 3, 2009

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THE STATE OF UNEMPLOYMENT

13.2 million: People unemployed in March 2009 — the most ever in records that date to 1948

12.8 million: Population of Illinois, President Obama’s home state

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A CITY’S WORTH OF JOB LOSSES

663,000: Net loss of jobs in March 2009

637,000: Population of Baltimore

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COLLEGE STILL COUNTS

4.3 percent: Unemployment rate for college graduates

9 percent: Unemployment rate for people who graduated from high school but did not attend college

13.3 percent: Unemployment rate for those with no high school diploma

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UNDEREMPLOYED

9 million: Number of part-time workers who would have preferred full-time work last month — the most in records dating to 1955

2.1 million: People without jobs who wanted to work, were available and had looked in the last 12 months, but had not looked in the last month.

15.6 percent: Unemployment rate including involuntary part-time workers and those who hadn’t looked in 12 months — the highest in records dating to 1994

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DOWNTURNS, THEN AND NOW

8.5 percent: Unemployment rate in March 2009

10.8 percent: Unemployment rate in December 1982, one month after deep recession ended

October 1983: Last time the unemployment rate was higher than the current level

59.9 percent: Portion of the total population that had jobs in February

July 1985: Last time the portion was this low

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MARCH UNEMPLOYMENT RATE BY GROUP

8.8 percent: Adult men

7 percent: Adult women

10.8 percent: Female heads of households

6.4 percent: Asians

7.9 percent: Whites

11.4 percent: Hispanics

13.3 percent: Blacks

21.7 percent: Teenagers

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RECESSION AS JOB KILLER

5.1 million: Net job losses since recession began in December 2007

651,000: Jobs lost in February 2009

741,000: Jobs lost in January 2009

681,000: Jobs lost in December 2008

122,000: Jobs lost in March 2008

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WHO’S SURVEYED

60,000: Number of households interviewed in the monthly Census Bureau survey from which the unemployment rate is extrapolated

40 percent: Portion of companies in the survey of businesses, from which payroll and job loss numbers are extrapolated, with fewer than 20 employees

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Team Obama’s Summers & Geithner’s “White” Wash of Bailout Banks to Avoid Bankruptcy Proceedings

While President Obama is jetting throughout Europe, more bad economic news have hit the fan.  Joblessness continue to be on the rise with sign of slowing, services provided by states such as unemployment benefits previously extended are quickly depleting, state and local taxes on the rise with fiscal budget deficits, and retirement and pensions plans are under pressure due to drop in value and the lack of contributions.

Critics continue to berate the Team Obama economic plan and its ability to solve the crisis as home prices continue to fall and there is lack of marketability of toxic assets to investors other than the banks themselves.  In the latest critical comments offered by experts, the supposed bank stress test move is nothing more than a “scam”, a white wash placebo to calm the American people.  This critique comes quickly on the heels of the news that FASB will relax and make changes to their “mark to market” accounting rules.

How long will American voters and taxpayers wait for results despite trillions of their money are going out the door to failed private corporations?  Take this poll.

The bank stress tests currently underway are “a complete sham,” says William Black, a former senior bank regulator and S&L prosecutor, and currently an Associate Professor of Economics and Law at the University of Missouri – Kansas City. “It’s a Potemkin model. Built to fool people.” Like many others, Black believes the “worst case scenario” used in the stress test don’t go far enough.

He detailed these and related concerns in a recent interview with Naked Capitalism. But Black, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis, says the program’s failings go way beyond such technical issues. “There is no real purpose [of the stress test] other than to fool us. To make us chumps,” Black says. Noting policymakers have long stated the problem is a lack of confidence, Black says Treasury Secretary Tim Geithner is now essentially saying: “’If we lie and they believe us, all will be well.’ It’s Orwellian.”

The former regulator is extremely critical of Geithner, calling him a “failed regulator” now “adding to failed policy” by not allowing “banks that really need desperately to be closed” to fail. (On Saturday, Geithner said on Face the Nation, if banks need “exceptional assistance” in the future “then we’ll make sure that assistance comes with conditions,” including potentially changing management and the board, but did not say they’d be shut down.)

Black says the stress test must also be viewed in the context of Geithner’s toxic debt plan, which he calls “an enormous taxpayer subsidy for people who caused the problem.” The fact bank stocks have been rising since Geithner unveiled his plan is “bad news for taxpayers,” he says. “It’s the subsidy of all history.”

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Obama Wants Bailed Out Banks to Modify Loans But Banks Don’t Want Play

President Obama presented a plan shortly after taking office to keep Americans in their homes by giving banks the taxpayers’ money in order for the bailed out banks to rework loans so mortgage payments can be reduced. But the banks have failed to do that as they have failed at everything else for the American economy and its people.

How long will Americans wait for results as jobless rates rise to an high since 1983 and more people lose their homes?  Take this poll:  http://www.misterpoll.com/polls/427966

Loan modifications rise; many don’t pare payments
Foreclosure prevention efforts grow, but fewer than half of loan modifications reduce payments

  • Friday April 3, 2009, 10:10 am EDT

WASHINGTON (AP) — Lenders are boosting their attempts to avoid home foreclosures, but fewer than half of loan modifications made at the end of last year actually reduced borrowers’ payments by more than 10 percent, data released Friday show.

The report, based on an analysis of nearly 35 million loans worth more than $6 trillion, was published by the federal Office of the Comptroller of the Currency and the Office of Thrift Supervision. It provides the most detailed and broad analysis to date of efforts to stem the foreclosure crisis.

Among loan modifications made in the October-December quarter, about 37 percent resulted in a drop in payments of more than 10 percent, compared with about one-fourth in the first nine months of the year. Regulators saw that growth as a positive sign.

“The trend toward lowering payments to make home mortgages more affordable is moving in the right direction,” John Bowman, acting director of the Office of Thrift Supervision, said in a prepared statement.

Still, nearly one in four loan modifications in the fourth quarter actually resulted in increased monthly payments. That situation can happen when lenders add fees or past-due interest to a loan and spread those payments out over the 30- or 40-year period.

Perhaps unsurprisingly, the report found that loans were far less likely to fall back into default if a borrower’s monthly payment is reduced by a healthy amount.

Nine months after modification, about 26 percent of loans in which payments had dropped by 10 percent or more had fallen back into default. That compares with about half of loans in which the payment was unchanged or increased.

“This new data shows that, in the current stressful environment, modification strategies that result in unchanged or increased mortgage payments run the risk of unacceptably high re-default rates,” Comptroller of the Currency John Dugan said in a statement.

The Obama administration is aiming to help up to 9 million borrowers stay in their homes through refinanced mortgages or modified loans. It is spending $75 billion to provide lenders an incentive to alter more loans.

Still, the faltering economy, driven down by the collapse of the housing bubble, is causing the housing crisis to spread.

Among the loans surveyed in the report, just over 10 percent were delinquent or in foreclosure, compared with 7 percent at the end of September, the report said. Delinquencies are increasing the most among prime loans made to borrowers with strong credit, it said.

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