“Summer of Recovery” Economic News Roundup! – UPDATED!
Posted by iusbvision on October 13, 2010
Stay tuned – more updates coming to this post soon!
The White House told us this would be the “Summer of Recovery” so how did it go? The elite media has been telling us that each and every month of woeful economic news has been “unexpected” or a “surprise” since shortly after Obama took power. Finally the canard is off and he elite media is running to catch up when the train has already left the station. For previous posts check out our Econ 101 and Energy & Taxes categories!
IBD: U.S. Won’t Recover Lost Jobs Until March 2020 At Current Pace
The U.S. economy lost 95,000 jobs in September, far worse than expectations for no change in employment. More Census-related temp jobs ended, as expected, but state and local governments slashed staff far more than predicted.
So far in 2010, the U.S. has added just 613,000 jobs — for a monthly average of 68,111. [The U.S. needs to create 125,000-150,000 jobs each month just to absorb new workers and prevent unemployment from rising.]
Employment bottomed in December 2009 at 129.588 million — two years after peaking at 137.951 million. At this year’s pace, the U.S. won’t recoup all those 8.36 million lost jobs* until March 2020 — 147 months after the December 2007 high.
That would obliterate the old post-World War II record of 47 months set in the wake of the 2001 recession.
The current jobs slump also is the deepest of any in the post-war era, with payrolls down as much as 6.1%. They are still 5.6% below their December 2007 level.
With state and local governments likely to shed workers for at least the next year or two as budget woes continue, the hiring burden will fall entirely on the private sector.
Private employers did add 64,000 workers last month, but that was a little less than consensus forecasts and far below what’s needed.
The U.S. needs to create 125,000-150,000 jobs each month just to absorb new workers and prevent unemployment from rising. So returning to the old peak employment a decade later would hardly suggest a healthy labor market.
(Unemployment held at 9.6% last month as the separate household employment survey reported an increase in jobs. But the underemployment rate rose 0.4 point to 17.1%, matching the 2010 high.)
The bottom line: It’s quite possible that the next recession will hit before the U.S. returns to old employment highs [this means double dip recession very likely as we have predicted since march 2009. – Editor].
AP: Unemployment has now topped 9.5 percent for 14 months in a row, the longest stretch since the Great Depression of the 1930s.
CNBC: Home foreclosure repo’s at record high – 95, 364 lost their homes in August alone
CNS News: Obama Added More to National Debt in First 19 Months Than All Presidents from Washington Through Reagan Combined, Says Gov’t Data
FactReal Report: Poverty Increasing under Obama and Democrat Congress
Reuters: Private employers unexpectedly cut 39,000 jobs in September [unexpected my ear, with Congress failing to act on keeping the current tax structure intact they have added to an already long list of new taxes coming soon]
UK Guardian: Indiana still awaits Obama’s promised green recovery. More than a year after the president visited to announce a new era of green jobs, the grant he promised has not materialised and unemployment is high.
Montreal Gazette: Indiana’s ‘RV Capital of the World’ still awaits Obama’s promised recovery
CNBC: New Yorkers’ Income Falls for 1st Time in 70 Years
The recession put a 3.1 percent dent in the personal incomes of New York state residents, who endured their first full-year decline in more than 70 years, according to a report released Tuesday.
Paychecks or net earnings tumbled 5.4 percent, while dividends, interest and rent slid 8.4 percent, to a grand total of nearly $908 billion, the state comptroller’s report said. Not only did New Yorkers’ personal incomes fall “almost twice” as much as they did in the nation as a whole, but they have yet to recover to pre-recession levels, Comptroller Thomas DiNapoli said.
AP: Social Security Administration’s inspector general report – 89,000 stimulus payments went to people who were either dead or in prison
Patterico: $111 million in stimulus money to L.A. produces … 54 jobs
CNS News: Feds Spent $800,000 of Economic Stimulus on African Genital-Washing Program
CNS News: Obama Administration Gave General Electric—Parent Company of NBC–$24.9 Million in ‘Stimulus’ Grants – GE Laid Off 18,000 people and posted $156 BILLION profit
GE owns NBC and MSNBC – is it any wonder that they are completely in the tank for Obama and have the most left wing bias in the entire elite media?
Video: Democrat Congressman calls deficit, debt a “myth”
Ed Morrissey comments:
The last we heard from Rep. Phil Hare (D-IL), he impressed voters nationwide by assuring us that he didn’t care about the Constitution when creating law in Congress. Now he wants to let us know that the national debt is nothing but a “myth.” In what will almost certainly become a sound bite in House races across the nation, Hare not only disputes the existence of debt and deficits, he insists that Democrats have to keep spending money we don’t have … for the children…
Bloomberg: Food Stamp Recipients at Record 41.8 Million Americans in July
The number of Americans receiving food stamps rose to a record 41.8 million in July as the jobless rate hovered near a 27-year high, the government said.
Recipients of Supplemental Nutrition Assistance Program subsidies for food purchases jumped 18 percent from a year earlier and increased 1.4 percent from June, the U.S. Department of Agriculture said today in a statement on its website. Participation has set records for 20 straight months.
An average of 43.3 million people, more than an eighth of the population, will get food stamps each month in the year that began Oct. 1, according to White House estimates.
WSJ: Middle Class Slams Brakes on Consumer Spending
AP: Consumer confidence drops to lowest since Feb.
Bloomberg: Goldman Sachs predict possible double dip recession
Goldman Sachs Group Inc. said the U.S. economy is likely to be “fairly bad” or “very bad” over the next six to nine months.
“We see two main scenarios,” analysts led by Jan Hatzius, the New York-based chief U.S. economist at the company, wrote in an e-mail to clients. “A fairly bad one in which the economy grows at a 1 1/2 percent to 2 percent rate through the middle of next year and the unemployment rate rises moderately to 10 percent, and a very bad one in which the economy returns to an outright recession.” [Remember the economy must grow at 1.5% just to break even on people entering the job market, anything less means unemployment and underemployment continue to rise – Editor]
S.F. Gate: California used a 340% over estimate of pollution levels to pass new restrictions on economy
Daily Caller: Democrat Senators threaten to raise energy costs in lame duck session
Gallup: Unemployment up sharply to 10.1% in September
Big Government: Stupid federal regulators forcing New York to replace 250,600 street signs over use of capital letters…
News Australia: CBO says US hiding true amount of debt – The CBO estimates the debt will be at $US16.5 trillion in two years, or 100.6 per cent of GDP. [at near 100% of Debt/GDP historically that is when currency and credit collapses – Editor]
CNBC: Retailers post weak July sales
HotAir: Manufacturing tanks in August
Reuters: CEOs less willing to hire, sales a worry
Rosenberg: Economy in depression, not recession
Chairman of Joint Chiefs of Staff Admiral Mullen: The national debt is the single biggest threat to national security
AP: Recession pushed birth rate to new low
AP: Marriages at record low
US News & World Report: The Most Fiscally Irresponsible Government in U.S. History
Fox News: Homelessness Up 50% In New York City
WSJ: Stock Market Logs Worst August in 9 Years.
USA Today: 50 million Americans on welfare programs
LA Times: 41 Obama White House aides owe the IRS $831,000 in back taxes – 638 workers on Capitol Hill owe the IRS $9.3 million in back taxes…
LA Times: Jobs aren’t coming back. Unemployment likely to stay high.
Bloomberg: Dollar falling
AFP: Dollar at 15 year low against the Yen
Business Insider: 19 Facts About The Deindustrialization Of America That Will Make You Weep
WSJ: GM Resumes Political Giving. $90,500 most to Democrats [Hey folks the govt owns 61% of that company, so this is the govt paying to get itself re-elected – Editor]
Financial Times: US Cities Face Half a Trillion Dollars of Pension Deficits
Heritage Foundation: ObamaCare increases insurance premiums
Washington Post: Business leaders say Obama’s economic policies stifle growth
Short video that explains the current budget deficits –
Priceless – Democrat Blumenthal stumped on how to create a job –
October 15 UPDATE –
AP: Applications for jobless benefits rise to 462K
Jobless claims have been stuck near 450,000 all year. Few employers see much reason to create many jobs, and some are still laying off workers. [This means we have been losing almost half a million jobs a month all year – Editor]
CNN Money: 85% of college grads move home –
Stubbornly high unemployment — nearly 15% for those ages 20-24 — has made finding a job nearly impossible. And without a job, there’s nowhere for these young adults to go but back to their old bedrooms, curfews and chore charts. Meet the boomerangers.
Heritage Foundation: Obama EPA Regs – The New Job Killer
Reuters: Banks foreclosed on 102,134 properties in September, the first single month above the century mark.
CNBC: Jobless Claims, Inflation, Trade Deficit Each Surge Higher
AP: Dollar tanks, stocks drop as Bernanke speech looms
Proactive Investors: Weak Dollar Has Gold at Record High
CNBC: US Consumer Sentiment Dips
WSJ: Mortgage Damage Spreads
AP: Government reports $1.3 trillion budget deficit