Economy

1 in 7 Depend on Food Stamps. Wow!

Jul 18, 2011  |  Posted by: Admin   |  Comments Off

The Economist reports today that  1 in 7 Americans depends on the Food Stamp program to have enough to eat. There’s a lot of pain out there with unemployment in the 9%+ range. The Economist also reports that the Food Stamp program is also a good economic stimulus, producing $1.73 in increased economic activity for each $1.00 spend on the program. For those unaware of the details of the program, this is a great read, addressing qualifications and income levels of participants. Read the whole article here.

Small Business Lending

Jan 19, 2010  |  Posted by: Admin   |  Comments Off

According to CNN Money, the 22 biggest banks cut small business lending another $1 billion in November. These are the banks that got most of the bailout money and that brings their total to $12.5 billion since April. I guess they needed the money to pay the bonuses.

Foreclosures Rise

Aug 14, 2009  |  Posted by: Admin   |  No Comments

Realty Trac reported that one in every 355 households in the U.S. that have a mortgage, got a foreclosure or a default  notice last month. That’s a 32% rise from July, 2008. That’s telling me there’s a lot of pain out there. There have been 500,000 bank repossessions since the first of the year.

President Signs Mortgage Fraud Bill

May 28, 2009  |  Posted by: Admin   |  No Comments

On May 20, President Obama signed a new law designed to stop the kinds of mortgage fraud that contributed to the current financial crisis. The law puts the monkey on the Justice Department’s back to prosecute predatory lending and mortgage fraud and gives them new tools to use in that pursuit. The bill gives federal agencies $165 million in the next two years to investigate and pursue fraud cases. Most of the money goes to Justice, but the Postal Service, the Department of Housing and Urban Development, Secret Service and Securities and Exchange Commission also received additional funding. This bill will allow the FBI to hire an additional 190 agents.

Student Loan Defaults Highest Since ’98

Apr 21, 2009  |  Posted by: Admin   |  No Comments

The default rate for government guaranteed student loans is expected to hit 6.9% for fiscal 2007 which ended October 31, 2008.  That’s up from 4.6% two years earlier. A tight job market is contributing to that rate. Sallie Mae has the same problem. There’s a surprise: people without jobs don’t pay their bills.

Mall Owner Bankrupt

Apr 16, 2009  |  Posted by: Admin   |  No Comments

General Growth Properties filed for bankruptcy today. They have $25 billion in debt, which sounds small in this day of trillion dollar deficits. They own malls all over the country including Cumberland, Northpointe, Southlake and Perimeter Malls in the Atlanta area.