Archive for the ‘The Economy’ Category

Michigan Foreclosures Soar! Freeze in Effect

Tuesday, January 19th, 2010

Michigan 8th in Nationwide Forclosures

A freeze was put on foreclosures in Michigan to help out unemployed and needy homeowners keep their homes. Despite this effort, foreclosure filings in Michigan jumped last year, suggesting that 2010 could be another rough year in a state where one out of every 38 households is in foreclosure. There was an 11.5% increase in filings in Michigan amounting to 118,302 new cases last year, an 11.5% increase over 2008 and a 35.6% rise from 2007 levels, and these filings surged 26% from November to December.

Michigan is ranked eighth nationwide for its foreclosure rate in 2009. Even though this moratorium seemed like a good idea at the time, it simply postponed the inevitable. Properties heading for a sheriff’s sale shot up at an astounding rate, indicating that some of those homeowners initially helped by the moratorium were headed toward a bank repossession, anyway.

Where are new jobs in Michigan?

Tuesday, January 19th, 2010

What happened to the stimulus bill?

The $787 billion dollar stimulus bill was signed eleven months ago and was supposed to generate new jobs and jump start the economy. Well, so far, it does not seem to have done that.

As reported by an injection molding company located here in Michgan, their business is up, which is really good news, however, they cannot expand the business, which would add up to 30 additional jobs, due to the fact that they cannot find a bank to loan them the money that they need for this endeavor. With the unemployment rate still high at 14.7% in Michigan (the highest in the nation), it makes you wonder how long it will take for the economy to turn around.

We are still in trouble.

Monday, November 9th, 2009

With the continuing slump in the economy, most communities are looking for ways to keep up with the increasing number of vacant properties. A lot of blight has struck Michigan and now state leaders are looking for assistance to meet this unwelcome condition. According to the Michigan State Housing Authority, there is a new plan called “The New Michigan Urban Neighborhood” that is seeking federal funds to revitalize our neighborhoods and aid in tearing down any structure that is adding to the blight in the state. A total of 290 million dollars is being sought in order to help in acheiving this in several communities. I wonder how much of this money is going to end up coming out of our pockets.

Jobless Benefits extended?

Wednesday, September 23rd, 2009

There is much speculation and debate in and around Washington and in the financial community that our Great Recession of 2009 is turning around, but normal working people and the unemployed don’t seem to see an end to this crisis any time soon.

There has been a bill presented to Washington that would allow an extra 13 weeks of extended benefits to those who are expecting their benefits to expire by the end of September. This bill would apply to about 300,000 people that are living in states with an unemployment rate of at least 8.5 percent.

The 13-week extension would supplement the 26 weeks of benefits most states offer and the federally funded extensions of up to 53 weeks that Congress approved in legislation last year and in the stimulus bill enacted last February.

Some folks who are opposed to the idea of unemployment insurance argue that extending benefits at a time when the economy is showing signs of recovery could be counterproductive to looking for work.

For those of us who have become unemployed, some 5 million people at the present time, many of whom have been on the unemployment list and have been without a job for six months or more, have discovered in our searching for work, that there is not a lot of that available. These are the people who know how important these jobless benefits have become.

It is likely that the unemployment exhaustion rate will continue to increase in coming months as the unemployment rate continues to rise. It is expected that Congress will have to extend jobless benefits through 2011 in order to combat this crisis.

The good news is that this bill is expected to pass and would include the unemployed in Alabama, Arizona, California, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Jersey, North Carolina, New York, Ohio, Oregon, Pennsylvania, Puerto Rico, South Carolina, Tennessee, Washington, Wisconsin and West Virginia.

Other states could qualify for more benefits if their unemployment rates increase to an 8.5 percent rate or higher.

Good news for a lot of people struggling to survive this weak economy.

Are You a Homeowner and Unemployed? – Check this out!

Monday, September 21st, 2009

Get an Affordable Mortgage

It appears that there is some talk going on in Washington regarding financial assistance to homeowners who’ve lost their jobs and can’t afford their mortgage payments.  Meetings have been held on the subject recently and more discussions are planned.

Some ideas discussed will allow jobless homeowners to skip some monthly payments, according to Faith Schwartz, executive director of Hope Now.  These talks have also included discussion on possible grants or loans to temporarily cover part of the mortgage costs for homeowners who become unemployed.

These meetings cover a whole gamut of individuals and organizations dedicated t0 preventing foreclosures and getting homeowners into more affordable mortgages.

But now, with unemployment nearing double digits, some economists say efforts to prevent foreclosures must also involve financial help to homeowners who lose their jobs. Otherwise, they say the housing recovery could stall.

“We’re seeing interest at high levels,” says a concerned insider. “At this point, the idea that unemployment is the real problem in the housing crisis is the conventional wisdom on Capitol Hill.”

One of the authors of a relief plan suggests that there should be a program that would provide housing vouchers attached to unemployment insurance.

Obama Administration Off to Slow Start

So, if you are an unemployed homeowner, or expect to be so in the near future, keep in mind that these programs exist.  The Obama administration has also announced a plan worth $75 billion plan in March that seeks to prevent foreclosures and get homeowners into more affordable mortgages but has been criticized for getting off to a slow start.

Keep these plans in mind just in case you become one of the unemployed.

Michigan – State Jobless Rate Up Slightly

Thursday, September 17th, 2009

Michigan Unemployment Rate Rises

After a one month decline, Michigan’s unemployment rate inched higher during August. The jobless rate rose two-tenths of a percent to 15.2%. That remained several points higher than the higher national rate of 9.7%. State economists held out hope that job losses of recent years may be flattening out. Michigan suffered big monthly jumps in the rate during the first half of 2009, but not since. The 15.2% rate is the highest in Michigan since the early 1980’s, when the rate hit 16.9%. This will likely keep Michigan with the highest unemployment rate in the nation, a position it has held for most of the last two and a half years. Meanwhile, Michigan shed another 43,000 jobs in August.

(Reported by John Gallagher of the Detroit Free Press on 09/17/09)

Ben Bernanke states recession is “very likely over”

Thursday, September 17th, 2009

Is the Economy Showing Growth?

Federal Reserve Chairman Ben Bernanke said Tuesday the worst recession since the 1930s is probably over, although he cautioned that pain — especially for the nearly 15 million unemployed Americans — will persist.

Bernanke said the economy likely is growing now, but he warned that won’t be sufficient to prevent the unemployment rate, now at a 26-year high of 9.7 percent, from rising.

“From a technical perspective, the recession is very likely over at this point,” Bernanke said in responding to questions at the Brookings Institution. “It’s still going to feel like a very weak economy for some time because many people will still find that their job security and their employment status is not what they wish it was.”

The recession, which started in December 2007, has claimed a net total of 6.9 million jobs.

With expectations for a lethargic recovery, the Fed predicts that unemployment will top 10 percent this year. The post-World War II high was 10.8 percent at the end of 1982.

Some economists say it will take at least four years for the jobless rate to drop down to a more normal range of 5 percent.

Even if the economy logs “moderate” growth in 2010, unemployment is likely to stay elevated, Bernanke suggested.

“Unfortunately, unemployment will be slow to come down. It will come down but it may take some time,” he said. “Obviously, that’s a very serious concern.”