President Obama finally declared an end to the Iraq war and promised to refocus on getting the economy revved up in the U.S. But where are we?
- The FDIC says more than 10 percent of banks are on the verge of failure.
- Americans are still losing their jobs in droves. This week, the unemployment claims slipped a little but were still at 472,000 for first-time unemployment claims. That signals a troubled economy.
- Mortgage interest rates dropped another tick this week. I just locked in on a refinance: 15-years at 3.75 percent with minimal costs. That replaced the 15-year 4.25 percent refinance I closed on last November – just 9 months ago. That alone tells you where we are with this crazy economy.
- And yet, the stock market went up 254 points yesterday.
It’s a confusing mess and unfortunately leads to one conclusion – no one really knows what is going on. The economists seem puzzled, and Washington seems puzzled. A big fight is brewing at the Federal Reserve, where half of the governors seem to believe we should just let the economy take its hit and move on and the other half feels as though pumping money into the economy will still do some good.
The Wall Street Journal reported that the president’s economic advisors have been meeting frequently. You can almost hear the tick-tick of time as we count down the days to the election in November. The president supposedly favors tax credits (hello Republican voters) and infrastructure improvements (hello Democrat voters). But can you get enough people employed, and enough taxes lowered to save the election for the Democrats?
The real question is whether what gets pumped into the economy next is going to make a difference. Whether keeping people from defaulting on their mortgages will keep home prices from dropping again, as they are widely expected to do. Whether you can get banks to lend no matter how many dollars you deposit in their vaults.
Again, it all goes back to jobs, and creating an environment of trust and optimism where small business feel flush enough to bring on a warm body.
If you have something to add, please leave your comment here.
Please tell me where you got your great refinance rate.
The Executive branch, congress and senate all need to sign up for medicare and social security participation – misery enjoys company.
Rochelle – It was from a mortgage broker in Chicago. But there are great rates like this available all over the US. Just remember, those with the highest credit scores get the lowest interest rates for refis. Thanks for the comment.
Lynn – Thanks for sharing. I think you’re right – facing global economic realities is a part of how we live our lives today.
LS: I actually think everyone in the Executive brand, Congress and Senate need to pay for their own health care. My family’s premium is now $2,250 per month, and that so-called “gold-plated” coverage doesn’t include dental, vision, orthodontics, or just about anything else that’s “exotic.” Yikes. Thanks for your comment.
I have just started a short sale after losing my job in Nov 09 and trying to work with BofA since Nov and getting the runaround. If they adjusted the home values and refi everybody at current rates it would jump start the economy.
JP: Probably true. I’ve been hearing from so many people lately who are losing their jobs. I agree that refinancing everyone at these historically-low interest rates, could be a real boost to the economy.
I think that everyone has a valuable imput on this situation and here is mine. the saddest part of this whole thing is that almost everyone is blaming the current president and they are not looking at the big picture. this whole mess is not something that happened over night and reguardless of who is in office; a democrat or a republican they would still have the same mess on there hands. the president is not the only one who makes decisions for the USA. He can start anything and/or support anything that he feels will help but it still has to go thru the house and the senate to be passed. Therefore trying to put the blame on President Obama I feel is wrong. He is doing his best to rectify what is years and years of bad choices and if if would have been McCain he would have had the same mess… everyone needs to stop pointing fingers and truly try to find a solution even if it means bitting the bullet a little…
Fortunately I will close on a 4.5% (from 5.75%) 30 yr fixed re-fi in a few days. Today I could get a 15 yr fixed re-fi at 3.75%, but my income has been dropping since 2008 and I need to improve my cash flow. I don’t like doing that at 56 years of age, but times are different. I guess my term life insurance policy will pay off the house for my wife.
What do you think about today`s front page article in the New York Times (9/6)…..”let the market fall..”
Please comment this Sunday on WSB…I listen every week….and have from the beginning…you are possibly the only one telling the truth about American economy…most others don`t have guts
Charles – wish I had seen your comment before the show. I talked about this today on Clark’s show (I filled in from 1 to 4). I think it’s possibly the only thing that’s left, but there will be huge repercussions in the economy if this happens. I’ll talk about it more on Sunday. Thanks for your kind words, and for listening to the show.