Is the California True Unemployment Rate at 18.47 Percent? The 10.1% Headline Number is the Highest Rate in Over a Quarter Century. 1.8 Million Workers Unemployed in one State. How Many are Partially Employed or Have Given up Looking for Work?
California is a microcosm of the entire United States. The most populous state with a GDP of $1.8 trillion, much of what happens in California does spread throughout the country. California’s employment situation is deteriorating at a breathtaking speed. The latest employment numbers were released after the bell closed on Friday, which now seems to […]
American Consumers Cutting up that Final Credit Card: The End of a 30 Year Consumption Era and the Nervous Breakdown of the Spending Psychosis.
Imagine sitting in a messy room. Chopped plastic all around you as you sit there clasping a set of red scissors. Only one more credit card sits in the middle of the room starring back at you. Can I do it you ask? Is it possible to go forward in life with no credit cards? […]
American International Group, AIG was founded in 1919 by Cornelius Starr who established the agency in Shanghai, China. The business took off and was very successful in Asia. Later, Starr expanded the company to Latin America, Europe, and the Middle East. It is fascinating how many in the media are portraying AIG as some homegrown […]
Stock Market Volatility is Back: Approaching a Decade of Lost Returns on Investments. The S&P 500 can fall another 42%.
The stock market is off to a horrible start for 2009. Many thought that things could not get worse than what we experienced in 2008. Yet market volatility, a sign of an unhealthy economy, is still with us and appearing again in a ferocious way. From January 4, 2008 to February 21, 2008 the S&P […]
I was cautious about the details in the new Homeowner Affordability and Stability Plan which was announced on Wednesday. It is going to use $75 billion from the additional $350 billion in TARP funds while accessing the $200 billion in backstops to Fannie Mae and Freddie Mac. Yet one key point, and probably a reason […]
Suburb Cat Thousandaire: How Americans Lost a Decade of Wealth through Debt and Listening to the Banking and Housing Industry.
Not all that glitters is gold. And not everyone touting to be a financial expert should be regarded as such. Americans have lived in what could be considered a decade built on a debt façade. As many Americans strolled their neighborhoods, possibly taking the dog out for a walk, many suddenly would come across a […]
Monthly Foreclosures and the Dreaded Road Ahead: On Path to another 3,000,000+ Foreclosures for 2009. 1 out of Every 173 Homes Received a Foreclosure Filing in California. 8,800 Foreclosure Filings a Day in the United States.
Foreclosures filings in past economic downturns were usually driven by job losses or contractions in the economy. In our current recession we had an interesting dynamic in that many foreclosures were caused by the actual mortgages given to borrowers. This of course spurred the housing bubble but more importantly, positioned a double whammy for our […]