Treasury Secretary Timothy Geithner on Tuesday unveiled the government's plan to attack the ongoing credit crisis and stabilizing the nation's banking system. But before outlining the Financial Stability Plan, he explained how economic growth was dependant on the flow of credit, and how access to credit was essential for people to own a home, buy a car, or pay for higher education. "Without credit, economies cannot grow at their potential, and right now, critical parts of...
As consumers continue to limit their spending, increase their savings rate, and decrease their credit balances to protect themselves from the unknowns in the economy, businesses across nearly all industry sectors continue to cut jobs.The government reported today that the U.S. economy lost another 598,000 jobs in January, the biggest monthly decline since December 1974.The overwhelming number of lost jobs brings the national employment rate to 7.6%, up from December's 7.2%. Analysts had predicted a rate...
The Labor Department reported today that the estimated number of recently unemployed workers claiming benefits for the first time increased to 626,000 for the week of January 31, 2009, up by 35,000 from the previous week. Analysts had expected about 583,000 for that week.It's estimated that there were nearly 4.8 million insured unemployed for the week ending January 24. This number doesn't include the 1.7 million persons claiming Emergency Unemployment Compensation. EUC was signed into law...
President Obama signed the Children's Health Insurance Program Reauthorization Act last night, which renews the health care plan known as SCHIP (state children's health insurance program) for 7 million children and opens it up to 4 million more.Obama said before signing the legislation, "In a decent society, there are certain obligations that are not subject to tradeoffs or negotiations, and health care for our children is one of those obligations." "But, as I think everybody here...
Today President Barack Obama and the U.S. Treasury Department announced new restrictions on executive pay for institutions that receive government aid from TARP funds. "These measures are designed to ensure that public funds are directed only toward the public interest in strengthening our economy by stabilizing our financial system and not toward inappropriate private gain," said the Treasury. The new rules come just a week after President Barack Obama sharply criticized Wall Street bankers for giving...
The U.S. housing market is starting to show some signs of improvement as homebuyers begin to take advantage of more affordable home prices and historically low mortgage interest rates.According to a report from the National Association of Realtors, the pending home sales index increased by 6.3% in December to 87.7 - 2.1% higher than December 2007 when it was 85.9. (An index of 100 reflects the average level of contract activity in 2001 - the first...
Citigroup released a fourth-quarter 2008 report today outlining how it has used much of the $45 billion bailout they've received from the U.S. Treasury under the Troubled Asset Relief Program (TARP). Citigroup's first quarterly report comes out after much criticism from taxpayers and lawmakers that big banks who have received TARP funds have continued to spend as if they were spending their own money, and that little has been done to help struggling homeowners and help...
The U.S. economy continues in a dramatic slowdown.The government reported today that real gross domestic product - the output of goods and services produced by labor and property in the U.S. - is estimated to have decreased at an annual rate of 3.8% in the fourth quarter of 2008 for the steepest decline since the recession of 1982. The third quarter of 2008 saw the economy shrink by .5%.That was better than the previous estimate of...
Even after receiving billions of dollars in bailouts from Troubled Asset Relief Program (TARP) funds, Wall Street bankers gave themselves about $18 billion in bonuses in the past two months, according to a report from the New York State comptroller.How is that even possible? I always thought bonuses were for doing a good job at running a successful and profitable company.Do these bank execs think they should continue to live it up even as businesses are...
President Obama signed his first piece of legislation today, the Lilly Ledbetter Fair Pay Act of 2009.President Obama opened with, "Well, this is a wonderful day. First of all, it is fitting that the very first bill that I sign -- the Lilly Ledbetter Fair Pay Restoration Act -- that it is upholding one of this nation's founding principles: that we are all created equal, and each deserve a chance to pursue our own version of...
