Jobless claims went up 19,000 to 479,000 at the end of last month, higher than expected, and the most since April. It signals that as the recovery sputters, employers are continuing to cut payrolls. [More]
recession
Rotten Economy Might Mean Big Savings On Airfare This Fall, If You Can Afford To Travel
By 8.2.10
Travel guru Christopher Elliott thinks that airfare prices could drop significantly this fall, thanks to a double-dip recession and general economic misery. So far prices for car rentals and cruise packages are going up, but Elliott says he’s hearing from travelers and travel companies about “dramatic, unexpected bargains” and “rates … on par with last year’s record-low prices” when it comes to flights. [More]
Oops, You Didn't Buy A House, You Bought Its Worthless 2nd Mortgage, And Now It's In Foreclosure
By 8.2.10
A couple thought they were snagging a $97,606 foreclosure fixer upper at a courthouse sale, only to find out months later they had actually bought its worthless second mortgage. The original was in arrears, and now the house would be sold at another courthouse auction. [More]
More Than 40 Experts Issue Call For More Government Stimulus And Tax Credits
By 7.20.10
Online news site The Daily Beast is apparently tired of this whole “floundering economy” thing, so it got more than a dozen economists and historians to come together and issue a manifesto yesterday calling on the U.S. government to “reboot America.” By the end of the day, the number of experts supporting the manifesto increased to more than 40. They argue that the government has to help return lost purchasing power to the unemployed and must use tax cuts and stimulus to boost overall demand, or we’ll never make it out of this slump. [More]
Jobs Report Out: 125,000 Pink Slips, Unemployment Falls To 9.5%
By 7.2.10
The much-watched Department of Labor’s jobs report came out today, and while it ain’t pretty, it ain’t ugly enough to make you stay home from the dance either. [More]
Filibuster Scuttles Jobless Benefits Restoration For Third Time
By 7.2.10
Happy Fourth of July weekend! To help you celebrate Independence Day, which includes independence from the government dole, a Senate filibuster has successfully prevented unemployment benefits from being extended for 1.3 million out of work citizens. [More]
HOA Board Member Says They're Not All Money Grubbing Scumbags
By 7.1.10
Yesterday we wrote about how in Texas, there’s been a bit of a spree of homeowner’s associations (HOAs) foreclosing on people’s houses over just a few hundred in late dues, then selling the house to themselves and turning it around for a juicy profit. And now, the other side of the story. Robert is an HOA board member in Texas and while his association does sometimes foreclose in order to collect, there’s more to the situation than meets the eye. Here’s his take: [More]
HOAs Foreclose On Homes Over $500 In Late Dues Then Flip For Personal Profit
By 6.30.10
In Texas, Homeowner’s Associations (HOAs) are on a foreclosing spree, selling members’ homes on the courthouse steps for just a few thousand dollars simply because they are a few hundred dollars behind on their homeowner’s dues. Sometimes they’re even selling it to HOA board members, who turn around and sell the house for half of what it’s worth, netting a tidy profit. [More]
Savings Rate Goes Up, But Spending Doesn't
By 6.29.10
As a nation, we saved more of our paychecks last month than any time since last September–nearly 4% of income went unspent. That worries economists, because it means we’re not spending at a high enough rate to support an economic recovery. But as the Washington Post notes, since unemployment remains high and most of the recent wage growth came from the government, consumers aren’t exactly comfortable with buying something shiny and new just because it’s on sale. [More]
Online Calculator Helps You Figure Out Your Freelancer Rate
By 6.21.10
One of the hardest things about going freelance is figuring out what hourly rate to charge. Freelance Switch has an easy-to-use online calculator to helps you figure that out. [More]
Your Household's Share Of The September 2008 Economic Collapse: $104,350
By 5.25.10
A recent report from the Pew Charitable Trusts tallies up each US household’s share in the economic collapse. Your household’s share? $104,350. That includes lost income, government bailouts, and both reduced home values and reduced stock values. [More]
265,000 Homeowners Stuck In "3 Month" Trial Loan Period For 6+ Months
By 5.21.10
Newly released data shows 265,000 homeowners are trapped in loan mod limbo, stuck in “3 month” trial loan periods for over 6 months, reports ProPublica. [More]
Some Homeowners Worse After Getting Rushed Into Gov't Loan Mod Program
By 5.14.10
Despite fulfilling every obligation under trial government-sponsored loan modification programs, some homeowners can end up far worse off than if they had never joined up at all, Propublica reports. That’s because if they’re denied a permanent modification, they have to pay the entire amount that was being discounted, often within a very short period of time. This pushes already strapped families past the breaking point. [More]
America: Eyes Wide Open, Wallet Half Shut
By 5.13.10
Like a tempered blade, America has passed through the fires of recession and emerged stronger and sharper, albeit with some pieces of itself permanently oxidized. What is on our minds? How do we feel and how are we acting in the new economy? Researchers at Communispace surveyed more than 1,200 U.S. consumers, spoke with 694 online community members, and came up with some very interesting results and insights. Here they are, in chunky infographic form: [More]
BoA Sued For Taking TARP $ But Not Helping Foreclosures
By 5.7.10
A class action lawsuit has been filed against Bank of America for taking $25 billion in federal TARP bailout money but intentionally failing to live up to its part of the bargain. The deal was that banks were supposed to use use the money to allow struggling homeowners to reduce their payments to affordable levels. “Bank of America came up with every excuse to defer the Kahlo family from a home loan modification, from stating they ‘lost’ their paperwork to saying they never approved the new terms of the mortgage agreement,” said the plaintiff’s attorney. “And we know from our investigation this isn’t an isolated incident.” Bank of America declined to comment.
Washington homeowners file class action against Bank of America [Seattle PI]
Goldman Riskier Than Citigroup
By 5.6.10
Bond markets slammed Goldman Sach this week, making the firm pay more for cashizzle then even the bailed-out Citigroup. Goldman’s yield rose to 2.79 percentage points over Citigroups’ 2.29. At the end of March, before the legal and regulatory headaches began, Citigrouop’s spread was wider than Goldman’s by .45 percentage points. Higher yields on debt usually indicate a higher risk of default or other negative credit events. Concerns continue to mount over how long and how deep the firm will be tainted by the SEC’s civil lawsuit and the investigation by federal prosecutors, and what other skeletons the scrutiny might shake out.
Blankfein’s Bonds Are Riskier Bet Than Pandit’s: Credit Markets [Bloomberg]
Senate Agrees To Ban Taxpayer-Funded Bailouts
By 5.6.10
An amendment to the financial overhaul bill banning the use of taxpayer funds for bank bailouts has been agreed upon in the Senate, says the LA Times. [More]
Banks Gone Amok, Unlawfully Foreclosing
By 5.5.10
“Darnit, where was that mortgage modification paper? I knew I put it somewhere. Oh well, let’s just foreclose on these people’s house. STAMP! Whoo, that was tough. Time to treat myself to a Diet Coke.” That’s an imaginative reenactment at what’s going on inside the mortgage departments of the biggest banks in America: total disorganization, the right hand not knowing what the left is doing, a bureaucratic and document-strewn nightmare that can swallow up people’s homes right from under them. [More]
