Daily Archives: November 18, 2009

Dr. Doom: Unemployment Expected to Climb the end of 2011

Nouriel Roubini, Economist at Stern School of Business at New University,says unemployment is expecting  to climb until the end of next year.

Roubini  says it will take time before  the jobless rate improves. In the last recession which ended in November 2001, unemployment did not improve until June 2003; over a year and half  later.

Dr. Doom says if you are unemployed and looking for work you better hold on tight  these  numbers will not improve until the end of 2010. The economic numbers suggest this take some time. Jobs will not come back right away.

Here’s the remedy. “A fiscal stimulus with  heavily  labor intensive shovel ready infrastructure jobs which help cash strapped local city, county and state governments. Along with temporary tax cut which incentives companies to hire workers.”

Roubini’s cure may not sit will with conservatives will believe tax cuts is the answer.

He says current workers are facing reduced hours, reduce pay even work furloughs.

Many jobs that eliminated during this recession are gone for good.

New York Daily News

Mortgages Delinquencies Reach an All Time high in Third Quarter

Despite the programs by the White House to prevent foreclosure, Mortgage delinquencies for the third quarter of 2009 has increased 6.25 percent as of September 30th, 2009. The good news the rate of delinquencies has slowed during the summer.

The rate of 6.25% of mortgage that are 60 days behind according to TransUnion, one of the three credit reporting agencies. That is a 58% increase over from 3.96%.

The  rate  up 7.6% in the second quarter and a 11.3% rise from the second    quarter from the first quarter.  This is up from 14% from the 4th quarter of 2008.

The slowing grow rate of delinquent is  good news said F. J. Guarrera, vice president of Financial Service, TransUnion. But the increase shows there are plenty of bad loans out there. Guarrera expects the loans delinquencies to decline in the second half of 2010.

Guarrera says there are two things  need to improve home values and unemployment. “Until we see improvement in both areas, it’s possible that it will take longer for delinquency to improve,” Guarrera said.

AP via My Way News has the rest of the story

ABC News: Jobs Saved or Created in Made Up Congressional Districts

Can someone tell me: What in world is a Job Saved or Created? What does that mean? How Do you define it? Is it Tangible?

ABC News discovered that the jobs list by states on the Recovery.gov website are located in Congressional districts that do not exist. Well imagine that. For example: 30 jobs saved or created in the 15th Congressional District at a cost of  “$761,420 in federal stimulus spending.

There is one teeny,tiny problem the Arizona 15th Congressional District does   not exist.

ABC News found many inaccuracies on the Recovery.gov site. Late Monday, officials who run the website  attribute the cause to human error.

“We report what the recipients submit to us,” said Ed Pound, Communications Director for the Board.

Recovery.gov receives information from state and  federal agencies, public colleges and universities on what programs funded.

“Some recipients clearly don’t know what congressional district they live in, so they seem to be just throwing in any number. We expected all along that recipients would make mistakes on their congressional districts, on jobs numbers, on award amounts, and so on. Human beings make mistakes,” Pound said.

Reaction from Congress was anger and frustration. U.S. Representative David Obey(D-WI) Chairman of the House appropriations Committee, issues  a written statement demanding the Recovery.gov site corrected and updated.

“The inaccuracies on recovery.gov that have come to light are outrageous and the Administration owes itself, the Congress, and every American a commitment to work night and day to correct the ludicrous mistakes.”

Another citation was $34 million to the Navajo Housing Authority in the 86th Congressional district. Again the congressional district does not exists.  In fact, ABC News cites several incidents from the recovery.gov website.

In Oklahoma, recovery.gov lists more than $19 million in spending — and 15 jobs created — in yet more congressional districts that don’t exist.

In Iowa, it shows $10.6 million spent – and 39 jobs created — in nonexistent districts.

In Connecticut’s 42nd district (which also does not exist), the Web site claims 25 jobs created with zero stimulus dollars.

The list of spending and job creation in fictional congressional districts extends to U.S. territories as well.

$68.3 million spent and 72.2 million spent in the 1st congressional district of the U.S. Virgin Islands.

$8.4 million spent and 40.3 jobs created in the 99th congressional district of the U.S. Virgin Islands.

$1.5 million spent and .3 jobs created in the 69th district and $35 million for 142 jobs in the 99th district of the Northern Mariana Islands.

$47.7 million spent and 291 jobs created in Puerto Rico’s 99th congressional district.

The  Recovery.gov  website created to give information on the $787 billion stimulus bill to show to foster greater accountability and transparency”.

Here’s a clue President Obama fire your economic advisers they do not have your best interest at heart. Peter Orzag, Christina Romer most go.  The $787 billion stimulus package does not work. Shovel ready jobs does not exist. This administration along with the Democratic congress supposed to create infrastructure jobs  where are the jobs and why unemployment rate continues grow(albeit at slower rate).

Look I understand that unemployment is a lagging indicator but The White House and Congress promised the Unemployment rate would not reach eight Percent we are now nine month out we are at 10.2  percent and growing.

We fooled by this stimulus package. The remaining funds will be distributed in the third quarter of  2010 to protect Democrats  for the November election. Time to start over  tax cuts and tax credits which gives employers incentives to hire the growing ranks of the Unemployed.

A job summit sounds good but we need action with results. Employers need feel confident to take  that risk. Until then Jobs  will continue to disappear and hope and change has become fear and disillusionment

ABC News