Tag Archives: US economy

Like his predecessor FDR…

Today’s article by Bob Unruh says what nobody in the main stream media is willing to say. ~TD

WND EXCLUSIVE

OBAMA LEADING NATION INTO ‘FULL-ON DEPRESSION’

Pollster: ‘I cannot remember a time when America was this despondent’

by BOB UNRUH

Barack Obama has led the nation into a “full-on depression,” according to a new poll that indicates only one in three people believes America is going in the right direction.

Depressed in America

Depressed in America

The poll shows a whopping 38 percent of Democrats believe America in general is “on the wrong track” or they are not sure.

The results are from a telephone poll conducted for WND by the public-opinion research and media consulting company Wenzel Strategies. It was taken Jan. 9-12 and carries a margin of error of plus or minus 3.22 percentage points.

On the basic question, 34 percent said the nation is going the right direction, 60 percent said America is on the wrong track and 6 percent said they were unsure.
Read more at http://www.wnd.com/2013/01/obama-leading-nation-into-full-on-depression/#a1GaTTpv2WdB48wg.99

The Patience of Jeremiah

A friend of mine recently told me a perplexing story concerning his employment situation. After two years of job hunting, he landed an interview with a great company in a beautiful city. It felt like destiny. At long last, his prayers would be answered.

And then something strange happened. During the interview, he answered every question perfectly, wowed them with his talent. He was on fire. The hiring manager gushed, “I see a lot of passion and potential in you.” Feeling emboldened, he asked for an offer. Then she shrugged. “We’re not allowed to do that. You’ll hear something in a few days.”

A few days turned into three weeks, and then he was rejected with no explanation. For him, it was the last straw. With a broken spirit, he told me he was giving up.

While the American economy continues to plummet out of control, stories like his have become the norm. In homes across the nation, from the deep south to the Pacific northwest, malaise and depression have come to define life.

And it keeps getting worse. A freakish cold spell in Central America just killed new crops, forcing grocers to raise prices and some to start dropping the dreaded S word: shortages. In cities like Atlanta, gas prices rise in the blink of an eye. Places like Nevada and California limp along with double-digit unemployment. As the workforce evaporates, municipal tax revenue falls even more, forcing governments to lay off jobs once thought recession proof.

While discussing these things with my friend, I mentioned the trials of Job in the Bible and how much patience he had to sustain. Yet it just didn’t feel like a good comparison. Something else was amiss.

Casting about for answers, I turned to the wisdom of my mother. I told her the plight of my friend and how it seemed exceptionally difficult. She replied that while his situation was quite steeped in pathos, it was not unique. Everyone she knew told the very same story.

And then I understood. These are not isolated cases of people facing temporary trials. This is a massive spiritual blight. This is the sin of a rebellious nation that can no longer be ignored. This is ancient Israel with Babylon at the gates. A comparison of ancient Israel to modern America is almost like holding up a mirror.

Which brings us to the prophet Jeremiah. People love to hold up Job as an example of patience because he had a happy ending. Yet for a profile in patience that goes deeper than that, we must look to Jeremiah’s life. He lived in a time when there was no success, no vibrant economy, nothing to look forward to.

Jeremiah certainly had dreams for his life. He surely wanted something better than to watch his nation burn to the ground before being drug away into slavery. Yet judgment had come and economic collapse was simply unavoidable. Jeremiah’s story stands as a sobering reminder that sometimes rain falls on the just and the wicked all at once.

We cannot foretell America’s eventual demise while thinking it will somehow not affect us. We cannot see Babylon at the gates and ask for our house to kindly be spared. We don’t always have the luxury of being Job. We must wait for a safe place to be provided, and then we must go where we are told to go.

The call to restore America is over. Our debt is as big as our entire economy. Our food is too expensive and our homes are drained of savings. It is now just a matter of time before Babylon marches into our cities.

Now is the time to restore our homes. We will not survive if we keep assuming we can live like always and somehow be spared. It is time to read Jeremiah.

-Candance

US Home Prices to Fall Another 8%

The whole United States is a collapsed housing bubble

Yesterday, we are told that “New U.S. claims for unemployment benefits rose more than expected last week.” It’s almost funny how we are told it’s always “more than expected” — except it’s not really funny. 

Here’s another piece of sobering information about the struggling economy: The housing market ain’t gonna get better any time soon. U.S. home prices are expected to decline another 8%, according to a report by Les Christie for  CNNMoney.com, November 1, 2010. Here are excerpts:

New home sales continue to languish around historic lows, barely exceeding an annual rate of 307,000. Existing home sales did rise to a 4.53 million annualized rate in September, up 10% compared with a month earlier, but are still well below the boom years.

…the housing market still faces many problems: a weak economy, sluggish hiring, tight mortgage underwriting, falling home prices, and slowing sales…. Prime among them are declines in home prices. And while cheaper homes are good for buyers, they also speak to a housing market that won’t stabilize.

Fiserv, a market analytics company, has scaled back its home price projections considerably. In February, it forecast national price gains of about 4% through the end of 2011. The company’s latest prediction is for a 7.1% drop in prices between June 30, 2010 and June 30, 2011. In fact, after five months of gains, prices in the 20 largest metro areas fell 0.2% in August, according to the latest S&P/Case-Shiller report.

The good news is, “There’ll be no vicious, self-reinforcing spiral down,” according to Mark Zandi, chief economist with Moody’s Analytics. But, he added, “more home price declines are coming.” He’s forecasting another 8% drop in home prices through the third quarter of 2011, which will put the total peak-to-trough decline at 34%. Even after that, in 2012, he sees very little price growth.

Home prices continue to fall because sales aren’t taking off. Without buyers, the market can’t bottom out…. Of course, nobody is buying homes when they can’t find jobs. And still more people can’t hang on to their homes because they’re out of work.

Nearly a million homes are expected to be repossessed this year, and analysts seem to be competing to issue the most dire forecast for future foreclosure numbers. Morgan Stanley reported that about 3.1 million borrowers are seriously delinquent with many expected to lose their homes. Zandi said more than 4 million are in trouble with half of those expected to go to foreclosure. And Laurie Goodman, of Amherst Securities, estimates the number of homes in danger of foreclosure at a whopping 11 million.

Real estate analyst Kyle Lundstedt of LPS Applied Analytics said serious delinquencies will continue to spike and will not return even to the current rates — which are already at peak levels — until late 2012 or early 2013. “The housing market is very fragile,” said Goodman.

However, Zandi sees a few factors that are positive. These include: Low interest rates; FHA, Fannie Mae and Freddie Mac all lending to qualified buyers; and an improving job picture. Zandi is especially confident that the employment picture is about to brighten. Corporate profits have spiked and, historically, hiring follow profits — with a lag of eight to 10 months. That means companies should start hiring workers very soon, Zandi said.

And once Americans start returning to work, they’ll find home prices are very reasonable. Housing is the most affordable it’s been since the pre-boom years. During the boom, Zandi said, prices were overvalued by about 50%; today it’s close to zero. That has attracted many investors, including foreign buyers. They’ve been scooping up single-family-homes and condos in hard-hit markets like Florida, the Southwest and the Midwest and renting them out. “The reason they’re in these markets is because they see value,” said Zandi.

~Eowyn