The number of new unemployment claims filed nationwide was down to only 570,000 last week, but consumer confidence is at a four-month low. Maybe that’s because newsworthy layoffs continue, including Whirlpool announcing that they will cut 1,100 full-time positions in the U.S., located in Evansville, Indiana.
recession watch
FDIC Low On Funds After Record Bank Failures In 2009
By 8.29.09
Given how many banks have failed and been taken over by the FDIC this year (84, including three yesterday), it’s not one bit surprising that the FDIC isn’t doing too well, funds-wise. It’s down to $22 billion, the lowest the failed bank fund has been since the savings and loan crisis of the early ’90s, when it needed to borrow money from the Treasury Department to keep going.
Broke Consumers Are Filling Up Carts And Leaving Them
By 8.24.09
This is a depressing phenomenon, if it’s real. According to the Associated Press, consumers are ditching items before they buy them. They’ve always done this, of course, but now they are supposedly doing it more.
Ladies & Gentlemen, Your 81st Bank Failure Of The Year
By 8.24.09
Normally we wouldn’t rely on the phrase “third largest bank failure of the year” to impress upon you the seriousness of a situation, but since we’re at our 81st bank failure of 2009, we’re going to go with it. Meet Guaranty Bank of Texas. It has now failed.
Laid-Off Workers Keep Up Appearances, Pretend To Be Employed
By 8.16.09
Earlier this week, the Washington Post shared the story of a man who tried hard to keep up appearances, and to carefully choreograph his routine so his friends and neighbors wouldn’t think of him differently. Finally, he tired of the charade, and outed himself. As an unemployed person.
Lose Your Job? Don't Worry, Our Exorbitant Payday Loan Fees Are On Us
By 8.13.09
Do you need cash right now, but are worried that you might lose your job in the next two weeks? Guarantees for customers who lose their jobs have worked for Hyundai, Ford, GM, and Sears, so now the practice has expanded to the payday loan industry.
Bad News: Yet Another Record Month For Foreclosures
By 8.13.09
For the third time in the last five months a new record for foreclosure filings has been reached says foreclosure tracking firm RealtyTrac. July saw an increase of 7% from June of this year and, even more telling, a 35% increase from last year.
Not So "Drinkable?" Sales Of Bud Light Are Dropping For The First Time Ever
By 8.11.09
Sales of Bud Light are down, probably because of the recession, but we hope it’s because of the aggressively annoying “Drinkability” campaign. In any case, AB has decided to roll out more than 15 new “Drinkability” commercials in the coming weeks, according to the Wall Street Journal.
AIG No Longer Hemorrhaging Money, Actually Makes Profit
By 8.7.09
Big news! AIG, poster child of the economic meltdown, has reported a profit. The company says it had a net income for the second quarter of $1.8 billion, which is much better than in 2008 when it lost $5.8 billion. So, how much did we-the-people get for our investment? $1.5 billion.
Poor Customer Service Preventing Home Owners From Modifying Mortgages?
By 8.4.09
There is currently a $75 billion program called MHA or Making Home Affordable, which aims to modify mortgages so home owners can stay in their homes. According to a new report by the Treasury Department, some banks are starting off so slowly that they’ve yet to modify a single mortgage. Others, like Bank of America, have modified only 4% of the eligible mortgages in its portfolio that are 60 or more days delinquent.
By 8.3.09
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GM is planning massive layoffs. Shockingly, just asking people to quit for money didn’t work. A job in this economy is apparently worth more than cash payments of $20,000 to $115,000 and $25,000 toward a new-vehicle purchase. [NYT]
More Stores Accepting Food Stamps Now That 39 Million People Use Them
By 7.31.09
We’re going to have to start offering tips for shopping with food stamps now that a record number of consumers —and stores— are using them.
Homeless? If You Can Prove There's A Relative Who'll Take You In, NYC Will Pay Your Way
By 7.29.09
NYC wants to have less homeless people — even if that means buying them a one way ticket out of town. The NYT says that the Bloomberg administration has paid for 550 homeless people to leave the city — including flying people to “Paris ($6,332), Orlando ($858.40), Johannesburg ($2,550.70), or most frequently, San Juan ($484.20).”
Everyone Still Shocked That High Unemployment Leads To Low Consumer Confidence
By 7.28.09
Consumer Confidence is down again. For example, the new score is 46.6. NPR says, “It would take a reading above 90 to signal that the economy is on solid footing.”
By 7.27.09
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Verizon is having a bad day as business customers cut down on phone lines. They’re planning to cut 8,000 jobs in the second half of the year. [Bloomberg]
New Home Sales Increase! Still Down 21%!
By 7.27.09
The world is currently overjoyed at the news that new home sales have increased by 11% this month, which is apparently much more than expected, but are still 21% below the levels of a year ago.
